Creditors of crypto lender Celsius Network are once again facing a surge of phishing attacks. This renewed threat comes as the bankruptcy proceedings of Celsius Network approach their final stages.

Reports on social media have highlighted the increase in phishing attacks. Scammers are impersonating Stretto, the bankruptcy services platform handling Celsius and its creditors.

Rising Phishing Attacks, Fake Emails and Malicious Links

Over the past week, several Celsius creditors have reported receiving phishing emails, raising concerns about the security of their financial assets. Scammers are posing as Stretto, the claims agent responsible for managing the bankruptcy case, and attempting to deceive unsuspecting victims.

Among the reports, one user mentioned receiving three phishing emails falsely claiming to be from Celsius on September 18. Additionally, others have fallen victim to fake emails containing malicious links that mimic Stretto’s communications.

These malicious links lead to counterfeit websites with URLs slightly altered from the genuine ones. This is where victims are prompted to connect their wallets. Once connected, scammers can drain the crypto assets stored in these wallets.

An industry analyst and business manager have issued warnings that phishing attacks are likely to escalate as the Celsius bankruptcy proceedings near their conclusion. They strongly advise taking precautionary measures and verifying the authenticity of links before clicking on them.

Connection to Voting Process

The timing of these phishing attacks coincides with Celsius Network’s authorization in mid-August to distribute ballots to customers for a vote on a proposed settlement plan. Scammers are capitalizing on this, using it as an opportunity to intensify phishing attempts, particularly as the voting deadline approaches.

According to Simon Dixon, CEO, and co-founder of the online investment platform BnkToTheFuture, the final date for voting was set for September 18. This was with the report scheduled for September 20, and a confirmation hearing slated for September 29. Celsius Network intends to seek final court approval of its restructuring plan on October 2.

Rooted in Previous Data Breaches

These phishing attacks appear to be linked to previous data breaches affecting Celsius Network. In April 2021, the network experienced an email server breach. This led to the leakage of user details, resulting in malicious emails sent to affected users. Furthermore, in July 2022, another third-party data breach exposed additional customer data, leading to a subsequent wave of phishing attacks.

Celsius Network customers have been patiently waiting for a resolution since the suspension of withdrawals in June 2022, following the collapse of the Terra ecosystem. Subsequently, the crypto lender filed for bankruptcy in July of the same year, marking a tumultuous chapter in its history.

Stay Vigilant Amidst Phishing Threats and The Road Ahead

As Celsius Network’s bankruptcy proceedings progress, it is crucial for creditors and users to remain vigilant in the face of these phishing threats. Taking proactive steps to verify the authenticity of communications and links can safeguard against potential losses in the crypto space.

With important dates on the horizon, including the confirmation hearing and final court approval of the restructuring plan, Celsius Network and its creditors navigate a challenging path towards resolution amidst these persistent security concerns.

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