FTX Creditors Face Phishing Threats as $5B Repayment Phase Kicks Off
On May 27, digital asset custodian BitGo began distributing the second phase of repayments to FTX creditors, as part of the recovery process following the platform’s collapse.
Alongside Kraken, BitGo is facilitating over $5 billion in additional repayments, adding to the $1.2 billion distributed in February.
According to the FTX Recovery Trust, while eligible users can now view the credited funds in their accounts, they won’t be able to trade or transfer them until May 30. “The funds are visible, but trading remains restricted until the end of the month,” confirmed FTX creditor Sunil Kavuri.
The repayment rollout has unfortunately triggered a rise in phishing scams, with numerous creditors reporting deceptive emails posing as official communications from BitGo, Kraken, or FTX. These fraudulent messages often include links to fake websites designed to steal login information.
Kavuri warned users to avoid clicking on any email links and instead access their accounts by manually typing in the correct website URLs. He emphasised that even legitimate-looking emails could be malicious during this sensitive period.
