May 17, 2024
Latest Cryptocurrency News

Celsius Creditors Warn of Phishing Ahead of Bankruptcy

Creditors of the bankrupt crypto lender, Celsius Network, are facing a renewed wave of phishing attacks as the bankruptcy proceedings of the crypto lender enter their final phases. In recent reports on social media, there has been an uptick in phishing attacks by scammers who are posing as Stretto, the bankruptcy services platform for Celsius, and its creditors.

One user, for instance, disclosed that they received three phishing emails on September 18, all claiming to be from Celsius. Several others have also fallen victim to fake emails containing malicious links, attempting to impersonate Stretto, the claims agent handling the bankruptcy case.

The counterfeit website alters the genuine URL by dropping the letter “s” and presents a “connect wallet” prompt, which allows the scammers to siphon off the contents of the victims’ crypto assets once connected.

An analyst and business manager have warned that as the Celsius bankruptcy proceedings near their conclusion, phishing attacks are likely to increase. They strongly advise taking precautionary measures and verifying links before taking any action.

In mid-August, Celsius received authorization to initiate the distribution of ballots to its customers for a vote on a proposed settlement plan. Scammers have capitalized on this development, intensifying their phishing attacks in proximity to the voting deadline.

According to Simon Dixon, CEO and co-founder of the online investment platform BnkToTheFuture, the final date for voting was September 18, with the report scheduled for September 20, and a confirmation hearing slated for September 29. Celsius intends to seek final court approval for its restructuring plan on October 2.

These phishing attacks appear to be linked to prior data breaches, including a breach of Celsius Network’s email server in April 2021 that exposed user details, resulting in malicious emails being sent to affected users.

Furthermore, the beleaguered crypto lender disclosed that more customer data had been leaked in yet another third-party data breach in July 2022, which triggered another wave of phishing attacks.

Customers of the crypto lender have been eagerly awaiting resolution since Celsius suspended withdrawals in June 2022 following the collapse of the Terra ecosystem, ultimately leading to the lender’s bankruptcy filing the subsequent month.

Image by pikisuperstar on Freepik

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