Investors have been reminded by the Singapore Police Force to be wary of websites that falsely claim they can assist them in recovering assets from the cryptocurrency exchange FTX, which has now gone out of business.
Local news source Channel News Asia stated that on November 19, the police issued a warning about a website that claimed to be operated by the United States Department of Justice and that prompted FTX users to check in using their account credentials.
Customers of the website, which has not been named, are led to believe that they "would be able to withdraw their assets after paying legal expenses." The website is directed at local investors who have been adversely impacted by the collapse of FTX.
The authorities said that the website was a phishing scam that was meant to trick people who were naive to the scheme into divulging their personal information.
Fake online articles that offer cryptocurrency auto trading schemes in the nation seem to have flourished lately; therefore, local authorities have issued a warning to citizens to be wary of such content while browsing the internet.
These articles often include famous politicians from Singapore, such as Tan Chuan-jin, who is the speaker of the Singaporean parliament.
Even while this is not the first time that Singapore's police have issued public warnings against crypto frauds, new advances in the market have left investors more susceptible to assaults than they were before.
It is predicted that one million creditors and investors have been negatively impacted as a result of FTX's bankruptcy.
They might potentially lose billions of dollars as a group.
The city-state has issued several warnings to investors that digital assets are very volatile, and it has even prohibited the promotion of cryptocurrencies on social media platforms.