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SBF phishing: Fake Sam Bankman-Fried video attempts to scam FTX investors on Twitter

By Alara Jordan

Edited by Charlie Mellor

11:29, 22 November 2022

The FTX name and logo is displayed on a smartphone
FTX‘s collapse has shaken consumer confidence in the crypto market – Photo: Shutterstock

A fake video impersonating FTX’s former chief executive Sam Bankman-Fried was published on Twitter in an attempt to lure users to a fake crypto giveaway and phising scam.

The account posted a “deepfake” video of Bankman-Fried with new audio dubbed over his speaking in what appears to be offering “compensation” for FTX users who lost their funds during the fallout of the exchange. 

Deepfake videos typically use artificial intelligence to replace one person’s likeness in a video with that of another.

“Hello everyone. As you know our exchange is going bankrupt. But I hasten to inform all users that you should not panic,” the fake Bankman-Fried-esque video said. It added:

“As compensation for the loss, we have prepared a giveaway for you, in which you can double your cryptocurrency. To do this, just go to the site ftxcompensation.com.”

The phishing attempt was apparently posted via a verified Twitter Blue account, giving the impression that the account was in fact legitimate. 

FTX chaos continues

The fallout of FTX has continued to unfold as it was revealed the cryptocurrency exchange owes more than $3bn to its 50 largest creditors, according to documents filed to the US Bankruptcy Court for the District of Delaware.

BCH/USD

380.00 Price
-2.110% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

XRP/USD

0.63 Price
+6.230% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,430.62 Price
-0.440% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

DOGE/USD

0.12 Price
-1.410% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

FTX, which was once valued at $32bn, filed for Chapter 11 bankruptcy protection on 11 November after pausing withdrawals and leaving almost one million customers unable to access their funds.

FTT to USD

At the same time of the Chapter 11 filing, Bankman-Fried also resigned from his role as CEO, but has continued to be vocal on Twitter about his attempts to “make customers whole again” and help retrieve customer funds 

Less than three years after it was founded, FTX’s collapse has left many customers out of pocket and has since shaken consumer confidence in the crypto market.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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