FTX Warns Community of Phony ‘Debt Tokens’ and Scams Claiming to Be Affiliated With the Bankrupt Exchange

On Friday, debtors who control FTX’s official Twitter account warned the community to “be on the lookout for fraud by individuals claiming to be affiliated with FTX.” They also noted that neither FTX’s debtors nor any person associated with the company issued any crypto assets or “debt tokens”. The warning comes as a token called “FUD (FTX User Debt)” is circulating on the Tron blockchain and is listed on Huobi.

FTX debtors use the official Twitter account to inform the community

FTX Debtors, who control the official FTX Twitter account, have been alerting the community to individuals claiming to be affiliated with the now-defunct cryptocurrency exchange. The company has filed for Chapter 11 bankruptcy, and the restructuring team and debtors often use FTX’s official Twitter account to keep the community informed of updates. February 17, 2023 debtors issued a warningstating that the bankrupt firm did not issue any debt tokens.

“Debtors to FTX are reminding stakeholders to be on the lookout for fraud by entities claiming to be affiliated with FTX,” the bankrupt exchange’s official Twitter account said. “FTX debtors have not issued any debt tokens and any such offerings are unauthorized.”

FUD Token Circulating on Tron Blockchain Listed on Huobi

As the exchange restructuring team and debtors warn the community about unofficial tokens, a cryptocurrency issued on the Tron blockchain called FUD, or FTX User’s Debt, is in circulation. Some information information about the coin is available at coingecko.com and as of February 18, 2023, it was selling for between $15.05 and $16.88 per unit. February 6, 2023 by Huobi announced that he registered FUD with an initial offer of 20 million.

The message also states that “dutydecided to destroy 18 million FUD. Tron founder Justin Sun discussed detailed the project on February 4, 2023, noting that “the bond token represents a high-quality FTX debt asset and is designed to benefit everyone in the crypto world.” Coingecko.com does not list the circulating supply of the FUD token, while Tronscan shows that currently 2,000,000 FUD tokens. Of this supply, 1,999,966 are hosted on Huobi, according to a Tron researcher, and there are only four unique holders.

According to Coingecko.com, Huobi is also the most active exchange, with FUD trading volume of $213,072 in the past 24 hours, mostly paired with peg (USDT). FUD hit an all-time high of $73.97 per unit on February 7, 2023, the day after it was listed, and has since dropped 78%. The warning, issued on Friday by FTX debtors and the official FTX Twitter account, does not mention any specific token by name. It simply provides a link to a web portal where people can get information about the bankruptcy and restructuring process at kroll.com.

What do you think of FTX’s warning about unofficial “debt tokens” and the recently launched FUD token? Let us know what you think about it in the comments section below.