• Jeremy Sheridan, a former assistant director of the United States Secret Service Office of Investigations, has warned that certain FTX customers could become targets if their personal information were to be made public.
• He cited examples of common online scams conducted through email and social media, including building fake business and romantic relationships, SIM swaps and phishing attacks.
• The legal team representing FTX debtors released a list of creditors owed money by the exchange in January, however the roughly 10 million users’ names and personal information had been redacted.
Warning from Former US Secret Service Asst. Director
Jeremy Sheridan, former assistant director of the United States Secret Service Office of Investigations, has warned that certain FTX customers could become targets if their personal information were to be made public. In an April 20 declaration filed with the U.S. Bankruptcy Court for the District of Delaware, Sheridan supported a motion from the debtors that would withhold “certain confidential information” of FTX users due to potential risks such as identity theft, asset theft, personal attack and further online victimization.
Potential Risks for Crypto Investors
Sheridan stated that FTX users holding large amounts of crypto would effectively have “a target on their back” as they could be victims of fraud by scammers looking at their wallets. He cited examples of common online scams conducted through email and social media such as building fake business and romantic relationships, SIM swaps and phishing attacks which are used to target those with cryptocurrency holdings.
Information Redaction by Legal Team
The legal team representing FTX debtors released a list of creditors owed money by the exchange in January but redacted roughly 10 million users’ names and personal information due to security concerns raised by Sheridan’s warning statement. A group of media outlets has objected to this redaction claiming it violates First Amendment rights related to press freedom so an agreement is pending between both parties involved in this issue over how much data should be included in court documents associated with these cases without putting people at risk from potential malefactors seeking out vulnerable individuals or entities with cryptocurrency holdings .
Precautionary Measures Recommended
As cryptocurrencies continue to become more widely adopted financial solutions around the world leading into 2021 it is important for investors to remain aware when dealing with any digital assets so they can avoid becoming victims themselves when engaging with exchanges such as FTX or other platforms offering services related to blockchain technology. Those considering using crypto should also take recommended precautionary measures such as utilizing two-factor authentication (2FA) systems on accounts or only connecting wallets from secure networks backed up offline where possible when making transactions involving digital assets like Bitcoin (BTC).
Conclusion
It is essential for crypto investors everywhere to stay vigilant against potential threats posed by malicious actors while taking advantage of new opportunities offered through blockchain technology as global society continues its transition towards digital currencies over traditional fiat money systems during 2021 onward in order maintain safe access their funds while avoiding any loss due data breaches or fraudulent activities targeting them personally via online platforms like FTX where they might store cryptocurrency-based investments securely long term.