Home » FTX warns investors about tokens purporting to represent the platform’s debt

FTX warns investors about tokens purporting to represent the platform’s debt

by Thomas

FTX debtors have warned investors about scams that are flourishing, promising users to get their funds back. This warning could include the FTX Users’ Debt (FUD) token, which we recently reported on.

Scams targeting FTX users are on the rise

Debtors in charge of FTX’s bankruptcy warned investors about potential scams that could emerge around the platform’s debt

Indeed, while many players have been harmed in this affair, the field is ripe for scams, as the current heads of the exchange remind us:

We are aware of active scams and frauds by third parties seeking to take advantage of FTX customers. Please note that neither FTX debtors nor any of their agents will ask you for money, fees, payments or passwords for your accounts as part of the […] potential return of customer assets. “

If in doubt, FTX encourages you to write to the following address to find out if a particular solicitation is legitimate or not: inquiry@ftx.com.

Is the FUD token allegedly linked to FTX’s debt targeted?

Recently, we alerted our readers to an initiative launched by DebtDAO embodied by the FTX Users’ Debt (FUD) token. While FTX does not explicitly target this token, its debtors do warn about “debt tokens”, stating that “such offers are not permitted”. This warning is therefore explicit, to say the least, because through its token, DebtDAO effectively claims to want to help FTX’s creditors.

At the time of our previous article, we observed that FUD was sailing around $70, which represented a capitalisation placing it in the top 50 of the cryptocurrency rankings. After less than three days of existence, this raised questions, and unsurprisingly, the token’s price has since collapsed, currently trading at just over $15.

Although the process is likely to be extremely lengthy, the only way to hope to recover some of the funds lost in the FTX bankruptcy is to wait for the legal process to take its course, which is likely to take several years.

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