FTX Cautions Public About Fraudulent ‘Debt Tokens’ and Scams Alleging Association with the Insolvent Exchange – What’s Going On?

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October 23, 2023 07:40 EDT

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The bankrupt crypto exchange FTX has warned the public about tokens issued by groups who claim to be working on its behalf.

In a tweet posted by the debtors who now control the FTX bankruptcy estate, crypto investors were urged to be “on alert for scams from entities claiming to be affiliated with FTX.”

“The FTX Debtors have not issued any debt token and any such offers are unauthorized,” the tweet said, while reminding readers that all official announcements regarding FTX and the bankruptcy process will be made via FTX’s official Twitter account.

The FTX Debtors remind stakeholders to be on alert for scams from entities claiming to be affiliated with FTX. The FTX Debtors have not issued any debt token and any such offers are unauthorized. All announcements will occur through this account and https://t.co/5G4nXK4kJr

— FTX (@FTX_Official) February 17, 2023

FUD token

The warning from FTX comes as at least one token with the name FTX Users’ Debt, or FUD for short, has caused some confusion in the community.

The token, which is issued on the Tron blockchain, is listed on coin tracking sites such as CoinGecko with a current price of $16.29, but with an unknown token supply.

Listed by Huobi

Despite having no official relationship with FTX, the FUD token has already been listed on the crypto exchange Huobi. At the time of writing, more than 99% of the trading volume in the token was in the FUD/USDT market on Huobi, which saw a 24-hour volume of just over $200,000.

The token has also received attention from Justin Sun, a Chinese crypto entrepreneur and founder of the Tron blockchain.

Writing on Twitter earlier this month, Sun claimed that FUD is a “bond token,” and that it “represents the top quality FTX debt asset and is set to benefit everyone in the crypto world.”

Exciting news for the crypto community! @HuobiGlobal has listed @FTX_Official Users' Debt Token (FUD). This bond token represents the top quality FTX debt asset and is set to benefit everyone in the crypto world. Stop FUD and trade FUD on @HuobiGlobal! https://t.co/NXaOAr6HO5

— H.E. Justin Sun 孙宇晨 (@justinsuntron) February 5, 2023

Justin Sun is a member of Huobi’s “Global Advisory Board,” according to a tweet he posted in October last year.