The Bankruptcy Of The FTX Picu On Crypto Fraud That Targets Its Investors

DFR warns crypto scams that FTX customers target. (photo: ktvz)

JAKARTA FTX's bankruptcy has left many investors looking forward to the return of lost funds, a condition of creating opportunities for fraudsters who use this opportunity to take advantage of injured victims disguised as government officials.

In a press release, the Oregon Division of Financial Regulation (DFR) warns crypto investors that fake apps and websites are mounted by fraudsters aiming to take their money but don't give anything in return. DFR urges traders to ensure that they have "worked on their homework" before sending their funds to crypto trading platforms.

DFR gave an example of a website claimed to be managed by the United States Department of State. According to DFR, the site states that it is trying to help FTX customers regain their assets. Therefore, the website can obtain information such as usernames and passwords from an investor.

We've said this before, but if it sounds too good to come true, maybe it is. We encourage everyone to do their homework and invest wisely, and diligently protect usernames, passwords, and other sensitive data," said Administrator DFR, T. K. Keen, as quoted by Cointelegraph.

Keen also noted that there are many things in the crypto industry that look legitimate but try to take advantage of someone. In addition to providing warnings, officials also encourage crypto-related fraud victims to file complaints to the office.

Meanwhile, executives involved in South Korea's crypto exchange scams have been sentenced to eight years in prison. Six officials involved in the $1.5 billion scam that captivated 50,000 investors by promising a 300% return have been arrested. However, the other three did not, because they pleaded not guilty to several charges and would defend themselves in court.