By James Davis
On Friday, the team assigned to oversee the FTX bankruptcy warned crypto investors that there was a scam token aimed to capitalize on the collapsed crypto exchange’s current troubles. On its Twitter account, FTX wrote that it had no affiliation with any entity claiming to issue debt tokens.
While the bankrupt exchange didn’t mention the token’s name, many suggest that the FTX’s warning was likely about a new token dubbed “FTX Users’ Debt.” The coin has been trading on the Huobi exchange since February 7.
FTX Users’ Debt Price Analysis
FTX Users’ Debt token passed the $80 mark a few hours after it launched and generated a trading volume worth $1.7 million in 24 hours. However, the token price has fallen sharply since then, currently changing hands for $15.34, according to data from CoinGecko.
As of this writing, the token is only listed on the Huobi exchange and trades against USDD and USDT. In addition, data from CoinGecko shows that FTX Users’ Debt has recorded nearly $240,000 in trades. However, its total circulating supply remains unclear because the token creators did not disclose the project’s tokenomics.
FTX filed for bankruptcy last November, with its then-CEO Sam Bankman-Fried, stepping down from his position. The exchange went crumbling down due to a bank run that drained liquidity, forcing its leadership to admit that there were no one-to-one reserves of client assets.
Bankman-Fried was arrested and charged with several criminal offenses relating to the downfall of FTX. Last month, he appeared before the court and pled not guilty to all charges. The disgraced crypto guru is expected to return to court in early October.
With billions of dollars missing, FTX users are still wondering if they will ever get their money from the exchange. To make matters worse, scam tokens, including FTX Users’ Debt, could possibly drain more of these customers’ funds.
Crypto Twitter Wants Huobi to Delist FTX Users’ Debt
Twitter users, including crypto trader (@Romano), have called out Huobi for listing the scam token. Many want FTX Users’ Debt delisted from the exchange.
Headed by Justin Sun, who is also the Tron founder, Huobi had a rough start into 2023. The exchange laid 25% of its workforce as part of its restructuring plan.