• Scammers have created a fake FTX token, dubbed FTX 2.0, to impersonate the now-bankrupt crypto exchange less than 24 hours after the company’s new CEO announced that the platform could be revived.
• According to blockchain security firm PeckShield, the bad actors sent the tokens to the FTX exchange, pretending to add liquidity before airdropping them to other crypto exchanges.
• The aim is to lure users into clicking fraudulent links that drain or burn their account balances.
Cryptocurrency exchanges have been the target of fraudsters for a long time, and the latest attempt to dupe users is no different. Within 24 hours of the announcement that the now-bankrupt crypto exchange FTX could be revived, scammers have created a fake FTX token, dubbed FTX 2.0, to impersonate the platform.
According to blockchain security firm PeckShield, the bad actors sent the tokens to the FTX exchange, pretending to add liquidity before airdropping them to other crypto exchanges. This has been done as a way to lure users into clicking fraudulent links that promise rewards but end up draining or burning their account balances.
The fake FTX 2.0 token has been designed to look similar to the original token, making it difficult for users to differentiate between the two. The scammers have also included back door functions in the token’s smart contract, which can be used to manipulate user balances.
Crypto exchanges have warned users to be vigilant when dealing with any cryptocurrency-related service. Users are advised to thoroughly research the token and its associated smart contract before investing, and to only use credible sources for their information.
Despite these warnings, it appears that some users have already fallen victim to the scam. PeckShield estimates that the fraudsters have managed to steal over $20,000 worth of cryptocurrency from unsuspecting users.
In response to the scam, the FTX team has released a statement urging users to stay vigilant and to report any suspicious activities. The team has also promised to reimburse users who have been affected by the scam.
The incident is yet another reminder of the need for all crypto users to be extra vigilant, especially when dealing with unknown or untrusted sources. As the industry continues to grow, so too will the number of scams and fraudsters looking to take advantage of unsuspecting users.