FTX Warns Community of Phony ‘Debt Tokens’ and Scams Claiming to Be Affiliated With the Bankrupt Exchange

On Friday, debtors who power the authoritative FTX Twitter relationship warned the assemblage to “be connected alert for scams from entities claiming to beryllium affiliated with FTX.” They besides noted that neither FTX debtors nor immoderate entity related to the institution has issued immoderate IOU crypto assets oregon “debt tokens.” The alert comes arsenic a token called “FUD (FTX User’s Debt)” has been circulating connected the Tron blockchain and is listed connected Huobi.

FTX Debtors Leverage Official Twitter Account to Inform Community

FTX debtors who power the authoritative FTX Twitter relationship are informing the assemblage astir entities claiming to beryllium associated with the now-defunct cryptocurrency exchange. The institution filed for Chapter 11 bankruptcy, and the restructuring squad and debtors usage the authoritative FTX Twitter relationship often to pass the assemblage of updates. On Feb. 17, 2023, the debtors issued a warning, stating that the bankrupt steadfast has not issued immoderate indebtedness tokens.

“The FTX Debtors punctual stakeholders to beryllium connected alert for scams from entities claiming to beryllium affiliated with FTX,” the bankrupt exchange’s authoritative Twitter relationship said connected Friday. “The FTX Debtors person not issued immoderate indebtedness token and immoderate specified offers are unauthorized.”

FUD Token Circulating connected Tron Blockchain, Listed connected Huobi

As the exchange’s restructuring squad and debtors pass the assemblage astir unofficial tokens, a cryptocurrency issued connected the Tron blockchain called FUD, oregon FTX User’s Debt, has been circulating. Some information astir the coin is disposable connected coingecko.com, and arsenic of Feb. 18, 2023, it has been trading for prices betwixt $15.05 and $16.88 per unit. On Feb. 6, 2023, Huobi announced that it had listed FUD, with an archetypal proviso of 20 million.

Description of FUD token from the Debtdao Twitter account.

The announcement besides states that the “Debtdao” decided to destruct 18 cardinal FUD. Tron laminitis Justin Sun discussed the task successful item connected Feb. 4, 2023, noting that the “bond token represents the top-quality FTX indebtedness plus and is acceptable to payment everyone successful the crypto world.” Coingecko.com does not database a circulating proviso for the FUD token, and Tronscan shows that determination are presently 2,000,000 FUD tokens. Of this supply, 1,999,966 are hosted connected Huobi, and determination are lone 4 unsocial holders, according to the Tron explorer.

According to Coingecko.com, Huobi is besides the astir progressive exchange, and implicit the past 24 hours, FUD has seen $213,072 successful trading volume, mostly paired against tether (USDT). FUD reached an all-time precocious of $73.97 per portion connected Feb. 7, 2023, the time aft it was listed, and it has since fallen 78%. The informing issued connected Friday from FTX debtors and the authoritative FTX Twitter relationship does not notation immoderate circumstantial token by name. It simply provides the web portal nexus wherever radical tin get accusation astir the bankruptcy and restructuring process astatine kroll.com.

What bash you deliberation astir FTX’s informing astir unofficial “debt tokens” and the precocious launched FUD token? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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