Crypto lender Celsius Network’s creditors find themselves grappling with a fresh onslaught of phishing emails, believed to be a direct consequence of two data breaches that occurred in 2022.
As the bankruptcy proceedings of bankrupt crypto lender Celsius Network near their conclusion, creditors are once again becoming the prime targets of a new wave of phishing assaults.
Social media reports from the past week have exposed a surge in phishing attacks perpetrated by scammers posing as Stretto, the bankruptcy services platform responsible for crypto lender Celsius and its creditors.
One individual disclosed receiving three phishing emails on September 18, all fraudulently claiming to originate from Celsius.
Additional reports emerged of counterfeit emails containing malicious links, cunningly impersonating Stretto, the claims agent overseeing the bankruptcy case.
The deceptive website, which subtly alters the legitimate URL by omitting an “s,” triggers a “connect wallet” prompt, enabling scammers to siphon off the crypto assets once a connection is established.
An analyst and business manager cautioned that phishing attacks were likely to intensify as the Celsius bankruptcy proceedings drew closer to their conclusion. He urged recipients to exercise caution and thoroughly verify the authenticity of any links provided.
In mid-August, Celsius received authorization to distribute ballots to its customers for voting on a proposed settlement plan. Scammers have seized this opportunity to heighten phishing activities in the lead-up to the voting deadline.
According to Simon Dixon, the CEO and co-founder of the online investment platform BnkToTheFuture, the final date for casting votes was September 18, with the report slated for September 20, and a confirmation hearing scheduled for September 29.
Celsius plans to seek ultimate court approval for its restructuring plan on October 2.
These phishing attacks appear to stem from previous data breaches, including an intrusion into Celsius Network’s email server in April 2021 that resulted in the exposure of user information, subsequently leading to a barrage of malicious emails targeting those affected.
The beleaguered crypto lender further suffered the leakage of more customer data during another third-party data breach in July 2022, which in turn triggered another wave of phishing assaults.
Customers of the crypto lender have been awaiting restitution ever since Celsius suspended withdrawals in June 2022 following the Terra ecosystem’s collapse, ultimately culminating in the lender’s declaration of bankruptcy the following month.