Overview

Inca Digital is investigating a fraud case involving a suspect who has reportedly scammed trading firms out of over $5 million by selling fake claims tied to the FTX bankruptcy liquidation.

Key Points:

• The investigation suggests that the perpetrator used AI deepfake technology to disguise their identity during video calls with potential claim buyers.
• At least two firms have fallen victim to this fraudulent scheme, where the suspect posed as a seller of valid FTX liquidation claims, which were ultimately found to be fake.
• The liquidation process for FTX is set to initiate payment on February 18, 2025.

Detailed Findings:

A survey conducted by Inca Digital reveals that the fraudster, or group of fraudsters, managed to acquire around $5.6 million by feigning transactions linked to the FTX liquidation process. They provided convincing fake videos and altered credentials during online conversations with buyers.

CEO Insights:

“It’s likely happening to more people than we know about,” remarked Adam Zarazinski, CEO of Inca Digital. This statement emphasizes the need for caution as many potential victims could exist right ahead of the FTX payout dates.

Conclusion:

With the ongoing rise in crypto market activities, especially with reactions from the recent administration, type of such thefts might become common. Zarazinski urged that stakeholders must be diligent and aware of such deceptions in the emerging digital assets market.