Scammers Impersonating the US State Department “Help” Affected FTX Users

The Oregon Division of Financial Regulation issued a warning to the users and investors to do due diligence before putting their funds on any crypto platform

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The collapse of the FTX has not only made many users angry but has also paved the road for the new way of scams — with quite a few scam artists promising help to those affected by the crash of the once popular crypto exchange.

The scam we’ll discuss here involves scammers posing as government officials and trying to exploit already injured victims.

This has prompted the Oregon Division of Financial Regulation (DFR) to issue a press release warning crypto investors about fake applications and websites that scammers create to take their money but give nothing in return. The DFR urged everyone to “do their homework” before sending any funds to crypto trading platforms.

An example the DFR gave is a website that claims to be managed by the United States Department of State. According to the DFR, that website is supposedly trying to help FTX customers regain their assets. And this “strategy” apparently worked for some users who have shared their usernames and passwords.

“We have said this before, but if it sounds too good to be true, it probably is,” said DFR Administrator T. K. Keen. “We encourage everyone to do their homework and invest wisely, and be diligent in protecting their usernames, passwords, and other sensitive data.”

Furthermore, the officials also encouraged victims of crypto-related scams to file complaints with the office.

Elsewhere in the cryptosphere, executives involved in a South Korean crypto exchange fraud were sentenced to up to eight years in prison. Six officials involved in the $1.5 billion fraud that lured 50,000 investors by promising 300% returns were nabbed. However, three claimed innocence to some charges and will defend themselves in court.