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

FTX debtors who control the official FTX Twitter account are warning the community about entities claiming to be associated with the now-defunct cryptocurrency exchange. On Feb. 17, 2023, the debtors issued a warning, stating that the bankrupt firm has not issued any debt tokens.

"The FTX Debtors remind stakeholders to be on alert for scams from entities claiming to be affiliated with FTX," the bankrupt exchange’s official Twitter account said on Friday. "The FTX Debtors have not issued any debt token and any such offers are unauthorized."

As the exchange's restructuring team and debtors warn the community about unofficial tokens, a cryptocurrency issued on the Tron blockchain called FUD, or FTX User's Debt, has been circulating. Some information about the coin is available on coingecko.com, and as of Feb. 18, 2023, it has been trading for prices between $15.05 and $16.88 per unit. On Feb. 6, 2023, Huobi announced that it had listed FUD, with an initial supply of 20 million.

The announcement also states that the "Debtdao" decided to destroy 18 million FUD. Tron founder Justin Sun discussed the project in detail on Feb. 4, 2023, noting that the “bond token represents the top-quality FTX debt asset and is set to benefit everyone in the crypto world." Coingecko.com does not list a circulating supply for the FUD token, and Tronscan shows that there are currently 2,000,000 FUD tokens. Of this supply, 1,999,966 are hosted on Huobi, and there are only four unique holders, according to the Tron explorer.

(Source: Bitcoin.com)