FTX Warns the Public Against Fake ‘Debt Tokens’ and Scams Claiming Connection with the Bankrupt Exchange


The defunct cryptocurrency exchange FTX has issued a warning against tokens created by parties claiming to act on its behalf.

In a tweet sent by the debtors who now control the FTX bankruptcy estate, investors in cryptocurrencies were warned to “be on the lookout for frauds from businesses claiming to be linked with FTX.”

“The FTX Debtors have not issued any debt token, and any such offers are unlawful,” the tweet said, reminding readers that any official updates about FTX and the bankruptcy proceedings would be delivered through the company’s official Twitter account.

At least one token with the term FTX Users’ Debt, or FUD, has generated some misunderstanding in the community, prompting the warning from FTX.

The currency, which is issued on the Tron blockchain, is listed on coin monitoring services such as CoinGecko with a current price of $16.29, but its token supply is unclear.

Despite not having an official affiliation with FTX, the FUD token has been listed on the Huobi cryptocurrency market. At the time of writing, more than 99% of the token’s 24-hour trading activity was on the FUD/USDT market on Huobi, which had a volume of around $200,000 USD.

Justin Sun, the inventor of the Tron blockchain and a Chinese crypto-entrepreneur, has also shown interest in the coin.

Earlier this month, Sun said on Twitter that FUD is a “bond token” that “represents the highest quality FTX debt instrument and will benefit everyone in the cryptocurrency industry.” According to a tweet sent by Justin Sun in October, he is a member of Huobi’s “World Advisory Board.”

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