The embattled firm FTX has an estimated $8 billion deficit on its balance sheet, and investors have become desperate to save their investments.
Such desperation has led them to seek alternative solutions that are leaving them vulnerable to phishing scams.
The Singapore Police Force has issued a public statement warning about a website claiming to be hosted by the U.S. Department of Justice, prompting FTX users to log in with their account credentials.
The website which was not named or identified promised investors their funds after a necessary fee was paid. This is a deliberate hoax to take advantage of the FTX collapse.
The website owners would remain with the details of the investors, which would amount to a security breach that would be hard to contain.
This is not the first time such a warning has been issued by this same police force. The collapse of the world’s second largest crypto exchange has led to a widespread panic in which investor losses amount to billions.
A second scam involves scammers promoting auto trading programs through fake articles. They mimic news websites and funnel unsuspecting investors to a site that prompts them for their account log in details.