Fraudsters Created a Fake FTX 2.0 Token to Dupe Users

Scammers have created a fake FTX token, dubbed FTX 2.0, to impersonate the now-bankrupt crypto exchange less than 24 hours after the company’s new CEO announced that the platform could be revived.

According to blockchain security firm PeckShield, the bad actors sent the tokens to the FTX exchange, pretending to add liquidity before airdropping them to other crypto exchanges. The aim is to lure users into clicking fraudulent links that drain or burn their account balances.

Fake FTX 2.0 Token

The security firm noted that the smart contract of FTX 2.0 has back door functions that allow the fraudsters to manipulate the users’ account balances.

The bad actors have airdropped the fake tokens to the Tron network and crypto exchanges KuCoin and Binance.

“Scammers are sending FTX 2.0 to FTX exchange, pretending to be the FTX exchange to add liquidity, and then airdropping to @justinsuntron, Kucoin, and Binance. They are tricking people into thinking it is the official FTX airdrop. Be alert!,” PeckShield wrote.

John Ray: FTX Could Be Revived 

The scam airdrop move comes as FTX is still deep in bankruptcy proceedings. Recall that the exchange and its affiliated entities filed for voluntary Chapter 11 bankruptcy protection in November 2022 after suffering from a severe liquidity crunch.

Yesterday, FTX’s new CEO, John Ray, told The Wall Street Journal that FTX could be revived. He noted that “everything is on the table” and that if a path forward was discovered, his team would not just explore but follow it. As such, the scammers are trying to prey on users’ sentiments as hope for a new FTX has sprung up.

Not The First

Scammers are always looking for opportunities to exploit users in the crypto space, especially through fake airdrops and impersonation.

Last year, fraudsters pretending to be the developers of the DeFi protocol PancakeSwap sent emails to crypto traders, offering airdrops worth more than $12,000, intending to lure unsuspecting users into clicking phishing links that would drain their wallet balances.