A scam group posing as FTX debt claimants defrauded two companies of more than $5.6 million, according to a new report from Inca Digital.
In order to carry out the scam, the offenders allegedly made use of identities produced by artificial intelligence and gained unlawful access to bankruptcy information.
According to the investigation, the most likely perpetrator is an individual or group that is using two identities, namely Lim Chee Chong and Teh Jin Loon. Inca Digital discovered that the con artist most likely used artificial intelligence techniques to change face appearances and presented false Singaporean identification cards that have visual inconsistencies.
There was a striking similarity between the photographs of the criminals and those of Kurtis Lau Wai-kin, a former professional gamer who is presently serving time in prison for drug trafficking.
FTX debt sales
The fraudulent activity started in June of 2024, when the con artist sold FTX debt claims to two different businesses. Both companies were later sent rejection notices by Kroll, the organization that manages FTX’s bankruptcy claims, despite the fact that the claims were confirmed to be legitimate.
According to the investigators, the con artist obtained access to the client’s data on FTX through either public bankruptcy filings or a data breach that occurred at Kroll in 2023. The blockchain research findings reveal that the thieves transferred the stolen money through the Binance, CoinEx, and Gate.io platforms.
The idea that the aliases belonged to the same entity was strengthened by the fact that two addresses that were directly associated with the scam transmitted payments to the same CoinEx deposit address.
In addition, the investigation was able to trace payments back to a MEV bot that was affiliated with Symbolic Capital Partners; however, Inca Digital was unable to corroborate that the company was involved.
