As the bankruptcy proceedings of Celsius Network, a troubled crypto lender, reach their final stages, creditors are once again falling victim to a surge in phishing attacks. Reports on social media have highlighted a recent increase in phishing attempts, with scammers posing as Stretto, the bankruptcy services platform responsible for handling Celsius Network’s bankruptcy and its creditors.
Some users reported receiving multiple phishing emails on September 18, falsely claiming to be from Celsius Network. Others received fake emails with malicious links, attempting to impersonate Stretto, the claims agent overseeing the bankruptcy case. The fraudulent websites drop an “s” from the legitimate URL and display a prompt to connect a wallet, enabling scammers to siphon off the crypto assets when connected.
An analyst and business manager warned that phishing attacks are likely to intensify as the Celsius bankruptcy proceedings approach their conclusion. He advised all affected parties to exercise caution and verify links before taking any actions.
In mid-August, Celsius obtained authorization to distribute ballots to its customers, who were asked to vote on a proposed settlement plan. Scammers have seized this opportunity to escalate phishing attacks in the run-up to the voting deadline.
According to Simon Dixon, CEO and co-founder of the online investment platform BnkToTheFuture, the final date for voting was September 18, with the report scheduled for September 20, and a confirmation hearing set for September 29. Celsius Network aims to seek final court approval for its restructuring plan on October 2.
These recent phishing attacks appear to be linked to previous data breaches, including a breach of Celsius Network’s email server in April 2021, which exposed user details and led to malicious emails targeting affected users. In July 2022, Celsius Network disclosed that more customer data had been leaked in another third-party data breach, resulting in yet another wave of phishing attacks.
Customers of the crypto lender have endured a prolonged wait for resolution since Celsius suspended withdrawals in June 2022 following the collapse of the Terra ecosystem. The subsequent month, the crypto lender filed for bankruptcy, leaving creditors in a state of uncertainty regarding the recovery of their assets.
