Months after the shutdown of FTX, customers face new challenges. Meanwhile, there are new developments in the case of FTX founder Sam Bankman-Fried. Here are the details…
FTX users being targeted by attackers
Months after the FTX exchange was shut down, customers continue to encounter issues and vulnerabilities. The closure of the exchange resulted in millions of users unable to access the substantial amount of capital stored on the platform. Recent reports reveal that former FTX users are the target of a new phishing attack over their registered FTX emails. This attack follows a SIM swap attack against Kroll, the claims agent in bankruptcy proceedings, that exposed customers’ personal information such as account balances, phone numbers, and home addresses. The data breaches have also affected other crypto firms, including Genesis and lender BlockFi.
Phishing emails promise to refund users their lost capital provided they link a crypto wallet to their account. However, this is a malicious attempt to drain users’ token assets and obtain sensitive information such as private keys. SIM swapping attacks are also highlighted in this context. Using this technique, scammers manipulate mobile operators to activate the SIM cards they control. They then gain control over their phone numbers and exploit victims’ information to steal passwords, financial data, cryptocurrencies, and other valuable assets.
Cybersecurity is critical
These events underscore the need for increased cybersecurity measures in the crypto industry and serve as a reminder for users to be vigilant against phishing attacks and other malicious activities. Phishing attacks target former FTX users via their registered emails. This attack follows a SIM swapping attack on Kroll that exposed customer data and impacted other crypto firms like Genesis and BlockFi. Scammers send promising emails promising to return lost capital if users bind a crypto wallet, but this is an attempt to steal tokens and private keys. SIM swapping attacks, in which scammers exploit phone operators to gain access to valuable information, are alarming.
DOJ takes action on SBF’s witnesses
Meanwhile, prosecutors are contesting the qualifications of witnesses proposed by the legal team for FTX founder Sam Bankman-Fried’s trial. They argue that these witnesses do not have appropriate disclosure files, and could be misled by their experience or make irrelevant statements. Bankman-Fried’s team is seeking to exclude a DOJ-recommended financial analyst from the case, citing regulatory compliance concerns. Both sides presented their arguments in the Daubert motions, and the trial is approaching in a month.
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