Police warns FTX investors of new scam

New scam in Singapore lures investors of now-bankrupt FTX to withdraw crypto funds in fake website

Singapore. A new fake website that targets investors of FTX has been monitored by the police. The scam website poses to help FTX investors recover all their investment losses after the collapse of the cryptocurrency exchange.

On 11 November, FTX filed for bankruptcy. Its founder Sam Bankman-Fired also resigned as chief executive.

In the wake of the bankruptcy, an estimated 1 million investors and customers face billions of dollars in losses.

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Among FTX’s backers include Japanese conglomerate SoftBank, Singapore state investment firm Temasek, and venture capital firm Sequoia. All these backers have also lost hundreds of millions of dollars in investments.

The fake website is supposedly hosted by the US Department of Justice. It urges FTX investors to log in with their account details, claiming that they could “withdraw their funds after paying legal fees.”

“The site is likely a phishing website for collecting login credentials,” stated the police.

Additionally, the police also issued another warning against fake online articles promoting cryptocurrency auto-trading programs.

These articles feature Singapore politicians like Speaker of Parliament Tan Chuan-jin, and Senior Minister Tharman Shanmugaratnam, claiming that these politicians “endorse algorithmic

cryptocurrency auto-trading programs, such as Immediate Edge, claiming that such programs generate massive profits”.

“The online articles portrayed the investments as highly lucrative and almost risk-free,” shared the police, adding that these are paid online advertisement articles that act as clickbait.

When a person clicks the link in the article, they will be taken to a fake website that offers investments through cryptocurrency, as well as other financial products. After providing details, they would receive a call from someone who would pressure them to invest.

Members of the public are advised to always be wary of scams and follow crime prevention measures like asking questions about investment channels and opportunities.

More from OMY: How To Invest In Singapore: A Beginner’s Guide

If you have any information on such scams, please call the Police Hotline at 1800-255-0000 or submit information online.

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