The Singapore Police Force has warned investors to be weary of fake websites claiming they can help them recover funds from the now-bankrupt cryptocurrency exchange FTX.
On Nov. 19, the police issued a warning about a website claiming to be hosted by the United States Department of Justice that prompts FTX users to log in with their account credentials, local news agency Channel News Asia reported. The website was not identified and targets local investors affected by the FTX collapse, claiming that customers “would be able to withdraw their funds after paying legal fees.”
The police said the website was a phishing scam designed to fool unsuspecting users into giving away their private information.
Local authorities have also warned against fake online articles that promote cryptocurrency auto trading programs in the country, which appear to have increased recently. These articles often feature prominent Singaporean politicians, such as parliament speaker Tan Chuan-jin.
Although this isn’t the first time Singapore’s police have issued public warnings against crypto scams, recent developments in the industry have made investors more vulnerable to attacks. An estimated 1 million investors and creditors have been affected by FTX’s bankruptcy. Collectively, they face billions in losses.
Despite promoting itself as a hub for cryptocurrency and Web3 innovation, Singapore has pursued stricter regulations around retail trading and self-hosted wallets. The city-state has repeatedly warned investors that digital assets are highly speculative and has even banned crypto advertising on social media.
Nevertheless, several crypto firms have applied for licensing in the city-state, with stablecoin issuers Circle Internet Financial and Paxos recently gaining approvals from the Monetary Authority of Singapore.
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