FTX Users Beware: Scammers Target $1.6b Bankruptcy Payout Recipients

FTX, the bankrupt cryptocurrency exchange launched by disgraced entrepreneur Sam Bankman-Fried, issued warnings about phishing scams targeting its creditors.

The third round began on September 30, distributing approximately $1.6 billion to remaining bankruptcy claimants.

Scammers are impersonating Kroll Settlement Administration and the FTX Recovery Trust through fraudulent emails designed to steal user credentials and cryptocurrency.

FTX’s official account posted examples of fake communications that mimic legitimate distribution notices.

The exchange warned users to remain vigilant against phishing emails and spoofed websites resembling the official FTX Customer Portal at claims.ftx.com.

It also emphasized that legitimate communications will never ask users to connect their wallets to any platform.

Fraudulent emails exploit distribution timeline

Scammers are sending emails purporting to be from “Kroll Settlement Advisory” with subject lines like “Completed Distribution to Distribution Service Providers” and “Confirmation of Eligibility for Second FTX Distribution.”

These fake messages direct recipients to fraudulent portals designed to steal login credentials and wallet access.

The fraudulent emails reference legitimate distribution details, including estimated recoveries of 118–142% of petition-date claim values and instructions to access funds through Digital Disbursements.

Some messages falsely claim that distributions will be paid in digital assets valued at market prices as of July 30, 2025—an added detail that lends the scams a veneer of authenticity.

The timing coincides with FTX’s legitimate third distribution phase, which began on September 30 following earlier rounds in February and May 2025.

FTX’s bankruptcy reorganization plan took effect earlier this year on Jan. 3. Initial payouts to the Convenience Class began on Feb 18.

Roughly 162,000 creditors with claims under $50,000 received $1.2 billion in the first distribution, processed through BitGo and Kraken.

The second round on May 30 exceeded $5 billion, covering larger creditors with claims above $50,000 in the Class 5 and Class 6 categories.

FTX’s reminder that legitimate services will never request wallet connections remains a key safeguard for identifying phishing attempts.

The official distribution process operates exclusively through approved cryptocurrency exchanges and payment providers, which handle all fund transfers without requiring recipients to connect external wallets.