Scammers Exploit BlockFi and FTX Creditors in Multi-Million Dollar Heist

An expert has uncovered a phishing scam allegedly targeting creditors of the bankrupt crypto firms BlockFi and FTX. In just five days, losses from the ongoing fraud have amounted to $7 million.

With the help of a few friends, I’ve uncovered a rather sophisticated ongoing phishing scam carried out by one of PinkDrainer’s customers, with losses (so far) of nearly $7 million over the last 5 days.

The source? Fake BlockFi emails, offering settlement claims for users. pic.twitter.com/sCSNGtcHaA

— Plum (@Plumferno) March 23, 2024

The researcher, known as Plum, discovered that victims receive emails purportedly from restructuring teams with updates on legal proceedings. Users are offered the chance to withdraw digital assets by clicking a link to verify wallet ownership.

The emails appear to come from the BlockFi restructuring team with an update on their court case and offer affected users the chance to withdraw their remaining balances… just click here and prove you own the wallet in question! pic.twitter.com/zXaFmQLtMD

— Plum (@Plumferno) March 23, 2024

Plum believes it is highly likely that the scammers are using a database from the email marketing service provider Mailer Lite, which was hacked in January.

The expert also linked the phishing campaign to the group Pink Drainer.

At the time of writing, the scammers’ wallet holds 29.55 ETH (~$102,255), along with various tokens worth ~$18,000. Funds continue to flow in, as noted by Plum.

Data shows that over the past few days, more than a dozen NFTs have passed through the address, including Mutant Ape Yacht Club #19 456 and Lil Pudgy #20 923.

“The worst part of this scam is that most of the assets are stolen from dormant wallets of people who likely suffered from BlockFi’s bankruptcy and haven’t touched their funds since,” the expert noted.

For this reason, he suggests that some victims may not even be aware of the thefts.

In February, over 57,000 users fell victim to phishing, losing approximately $47 million in digital assets, according to Scam Sniffer.