A sophisticated scam group posing as FTX debt claimants has defrauded two companies of more than $5.6 million, according to a recent report by Inca Digital. The perpetrators allegedly utilized AI-generated identities and gained unauthorized access to bankruptcy records to execute the scheme.
The investigation identified the likely culprits as individuals operating under the aliases Lim Chee Chong and Teh Jin Loon. Using AI tools, the scammers manipulated facial appearances and presented fake Singaporean ID cards with noticeable visual inconsistencies. Their photos bore a striking resemblance to Kurtis Lau Wai-kin, a former professional gamer currently serving a prison sentence for drug trafficking.
The fraud began in June 2024 when the scammers sold FTX debt claims to two companies. While the claims initially appeared legitimate, both firms later received rejection notices from Kroll, the company overseeing FTX’s bankruptcy claims. Investigators suspect the scammers accessed FTX customer data via public bankruptcy filings or through a 2023 data breach at Kroll.
Blockchain analysis traced the stolen funds through Binance, CoinEx, and Gate.io. Two addresses linked to the scam sent funds to the same CoinEx deposit address, suggesting the aliases were used by the same entity. Further analysis linked some of the funds to an MEV bot associated with Symbolic Capital Partners, though Inca Digital could not confirm any direct involvement of the firm.
The case underscores ongoing security risks in cryptocurrency markets, particularly regarding bankruptcy claim sales and unauthorized access to sensitive financial data. Investigators continue to track the funds and identify any potential accomplices in the scheme.