Singapore authorities have warned investors to beware of fake websites claiming they can help them recover assets from the now-defunct cryptocurrency exchange FTX. According to local news source Channel News Asia, on November 19 the police issued a warning about a website that claimed to be operated by the United States Department of Justice and asked FTX users to input their account credentials.
The website, which has not been named, tricks customers into believing that they can withdraw their assets after paying legal expenses. The scam targets local investors who have lost money in the collapse of FTX. If successful, the scheme would allow scammers to access personal information.
In recent times, there has been a proliferation of bogus online articles peddling cryptocurrency auto trading schemes; as such, Singaporean authorities have cautioned the public to exercise discretion when reading such content. These offending articles usually feature well-known local politicians, like Tan Chuan-jin who is currently the speaker for Singapore’s parliament.
This is not the first time Singapore’s police have issued public warnings against crypto frauds, but new advances in the market have left investors more susceptible to assault than ever before. It is estimated that one million creditors and investors have been negatively impacted by FTX’s bankruptcy.
If they act as a group, they could lose billions of dollars. The city-state has cautioned investors that digital assets are unstable and even banned the promotion of cryptocurrencies on social media platforms.