Ripple’s Chief Technology Officer, David Schwartz, has sounded the alarm about a dangerous scam preying on former users of the now-defunct FTX crypto exchange. As FTX moves closer to partially repaying customers, scammers are exploiting the situation to defraud unsuspecting individuals.
The Scam Tactic
In a post on X, Schwartz explains that many former FTX customers are receiving fraudulent emails. These emails claim the user must take immediate action to secure their claim against the bankrupt exchange.
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Scammers use manipulative tactics, playing on a victim’s fear of losing out, and often ask users to connect their crypto wallets for “verification” or to expedite their claim process. This is a ploy to steal funds.
There are some scam emails circulating claiming that you need to do something about your FTX claim. Don't use the links in those emails. You can check the status of your claim at the official portal:https://t.co/4AvGkii3kh
— David "JoelKatz" Schwartz (@JoelKatz) March 21, 2024
Protect Yourself
The Ripple CTO has provided an official link to the FTX claims page to help users combat this scam. This page provides information on checking your claim status, viewing your FTX account balances, and procedures for submitting claims (though the deadline for this has passed)
Remember, the official FTX claims deadline was September 29, 2023, the exchange is currently working to process claims and liquidate assets to facilitate repayments. Ripple itself reportedly holds $11 million in claims with the FTX bankruptcy estate.
Schwartz: A Vigilant Advocate for the XRP Community
This is not the first time David Schwartz has proactively warned users about potential scams within the cryptocurrency space. Earlier this year, Schwartz, on X, warned users of malicious links attempting to steal NFTs from OpenSea users.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Ripple Calls SEC’s Latest Suggestion in the XRP Lawsuit a Delay Tactic
Last year, he also raised an alarm on fake airdrops falsely claiming to be linked to Ripple’s potential victory in its legal battle with the SEC.
Schwartz noted, “A lot of scammers are taking advantage of the recent good news to try to cheat and steal. There are no airdrops, giveaways, or special offers associated with this ruling.” These instances show how determined he is to protect the XRP community from bad actors.
It’s crucial to exercise extreme caution when navigating the cryptocurrency landscape. Remain skeptical of any guarantees of extraordinary returns. Thoroughly research projects, safeguard your private keys, and never transfer funds to untrusted sources. By prioritizing due diligence and secure practices, you can better protect yourself from potential scams.
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