New Crypto Bankruptcy Phishing Campaign Exploits Customers’ Funds as Court Approves US Shutdown

Shortly after the SEC charged Bittrex, “the best crypto trading platform,” with operating an unregistered securities exchange, the crypto exchange chose to shut down its U.S. operations and return assets to customers in the wake of the complaint after filing for bankruptcy protection several months ago. 

Abnormal Security has unveiled the details behind a novel bankruptcy phishing campaign in which real customers of crypto exchange Bittrex received malicious emails unbeknownst to them, claiming they still had assets on the exchange that could be withdrawn.

The timing of the attack was deliberate. Bittrex received bankruptcy court approval on Monday, October 30, to officially shut down U.S. operations. The threat actors had access to this information and determined that 10/23 was the best day to launch the attack as the deadline was in the court docket. Hackers claimed if the funds were not taken out of the crypto trading platform before the withdrawal period ended on 10/25, all assets would be forfeited. 

You can read the Abnormal Security report here.

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