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On Friday, debtors controlling the official FTX Twitter account warned the community to “be on the lookout for scams from entities claiming to be affiliated with FTX.” They also noted that neither the FTX debtors nor any entities related to the company have issued any IOU crypto-assets or “debt tokens.” The notice comes as a token called “FUD (FTX User’s Debt)” has circulated on the Tron blockchain and is listed on Huobi.
FTX debtors controlling the official FTX Twitter account are warning the community about entities claiming to be associated with the now-defunct cryptocurrency exchange. The company filed for Chapter 11 bankruptcy, and the restructuring team and debtors frequently use the official FTX Twitter account to inform the community of updates. On 17 February 2023, the debtors have issued a warningwhich states that the bankrupt company has not issued any debt certificates.
“The FTX debtors remind stakeholders to be on the lookout for fraud 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 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 coinecko.com and as of February 18, 2023, it has been trading for prices between $15.05 and $16.88 per unit. On February 6, 2023, Huobi announced that it had listed FUD, with an initial supply of 20 million.
The announcement also states that “Debt tax” decided to destroy 18 million FUD. Tron founder Justin Sun discussed project in detail on February 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 show 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.
According to Coingecko.com, Huobi is also the most active exchange, and in the last 24 hours, FUD has seen $213,072 in trading volume, mostly paired against tether (USDT). FUD hit an all-time high of $73.97 per unit on February 7, 2023, the day after it went public, and has since fallen 78%. The warning issued on Friday from FTX debtors and the official FTX Twitter account does not mention any specific token by name. It simply provides the online portal link where people can get information about the bankruptcy and restructuring process at kroll.com.
What do you think about FTX’s warning about unofficial “debt tokens” and the recently launched FUD token? Let us know what you think about this topic in the comments section below.
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