Scammers are using the opportunity to take advantage of the collapsed exchange, FTX victims by posing as government officials.
Scammers are leveraging the opportunity presented by users’ desire for the restoration of lost funds caused by the FTX crash to prey on already vulnerable victims by acting as government representatives.
The Oregon Division of Financial Regulation (DFR) issued a press statement warning cryptocurrency investors that phony websites and applications set up by con artists are intended to steal their money and provide nothing in return.
Before transmitting any money to cryptocurrency trading platforms, the DFR advised traders to “do their homework.” The DFR cited as an example a website that made the claim to be run by the US Department of State.
The website stated that it was attempting to assist FTX customers in recovering their assets, according to the DFR. As a result, the website was able to obtain data from an investor, including usernames and passwords. T. K. Keen, the DFR administrator, said:
“We have said this before, but if it sounds too good to be true, it probably is. We encourage everyone to do their homework and invest wisely, and be diligent in protecting their usernames, passwords, and other sensitive data.”
In the crypto sector, Keen also pointed out that there are numerous practices that appear genuine but are intended to exploit consumers. In addition to issuing a warning, the officials urged those who have been the victims of cryptocurrency-related frauds to report them to the office.
Executives responsible for a South Korean cryptocurrency exchange scam were given prison terms of up to eight years. Six officials were arrested for their roles in the $1.5 billion swindle that attracted 50,000 investors with promises of 300% returns. Three of them weren’t, though, and they’ll be defending themselves in court after claiming innocence in some cases.
