The bankruptcy watchdog reorganization team of exchange FTX is warning investors to exercise caution when considering any new tokens that claim to be associated with FTX, as scammers may try to profit from the confusion.
#FTX Bankruptcy Tips Beware of Unauthorized “FTX User Debt” $FUD and liar @azcoinnews https://t.co/zrdwG209In
— AZCoin News (@azcoinnews) February 18, 2023
The warning comes amid concerns over a new token called “FTX User Debt” (FUD), which was listed on Justin Sun’s Huobi exchange on Feb. 7. The price of the token increases. The post-listing high of $115 led DebitDAO to consider destroying approximately 18 million FUD tokens. However, trading activity has since slowed, with the price falling below $16 with a volume of $231,300, according to Coingecko data.
FUD price chart | Source: Coinecko
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The FTX restructuring team released a statement via Twitter alerting stakeholders to scams from entities claiming to be affiliated with FTX. The team clarified that no debt tokens were issued by FTX debtors and any such incentives are not permitted. In this case, the debtor is the company itself, and the creditors are entities to whom the company owes money, such as customers.
“FTX Debtors alerts stakeholders to scams from entities claiming to be affiliated with FTX. FTX Debtors have not issued any debt tokens and any such offers are not permitted. All notifications are through this account.”
While Justin Sun supported FUD’s listing on Huobi Global, claiming it was the “top FTX debt asset,” the crypto community expressed skepticism about the token. DebtDAO does not have a website, and its Twitter account was last active on February 8.
The collapse of FTX, one of the largest cryptocurrency exchanges, was a major event in the crypto space. However, investors must exercise caution when considering any new tokens that claim to be associated with FTX. The warning from the restructuring team overseeing the bankruptcy made it clear that any such offer was unauthorized and investors should be on high alert for potential scams.
- DebtDAO burns 18 million FUD as insane demand pushes price to $113
- Huobi suddenly launched FUD——DebtDAO “FTX debt collection” project token
according to AZCoin News