Alleged Shapeshifting Fraudster Scams Companies with Fake FTX Liquidation Claims

At least two unnamed companies have been deceived by a supposed shapeshifting fraudster selling millions of dollars in fake FTX liquidation claims, utilizing artificial intelligence to obscure his identity during video calls with buyers, according to an investigation by data firm Inca Digital.

The scammer is believed to have stolen at least $5.6 million by impersonating someone seeking to sell high-value FTX liquidation claims that initially appeared valid but were ultimately fake. The fraudster may have employed face-swapping video technology during calls and produced falsified credentials, as reported by Inca Digital officials who assisted in the investigation.

Adam Zarazinski, CEO of Inca Digital, stated in a CoinDesk interview, “It’s likely happening to more people than we know about.” He emphasized the importance of raising awareness about these scams, particularly as FTX payouts are imminent.

The illicit funds were rapidly laundered through non-U.S. exchanges, such as Binance, raising questions about whether federal law enforcement is pursuing information regarding these platforms. Inca Digital published their findings in a report on Tuesday.

The collapse of the FTX exchange resulted in billions of dollars in assets awaiting distribution to creditors, with that process set to commence next week. This has led to the emergence of a secondary market for pending distributions.

While some of Inca’s report conclusions are educated guesses based on available evidence, they note that the scammer engaged in video calls with purchasing firms, initially passing scrutiny but later raising doubts about its authenticity, a growing issue amid the rise of AI technology.

In addition to the allegedly fraudulent video presence, buyers were shown fake identification, provided with false addresses in Singapore, and crucially, given what appeared to be legitimate claim data. This data can sometimes be found publicly online but has also been the target of data breaches from companies involved in the bankruptcy processes, according to the report.

Zarazinski warned that such scams may increasingly target the booming crypto markets, particularly with the recent surge in activity stemming from the administration of President Donald Trump. “For every opportunity, there are also bad guys lurking behind that opportunity,” he stated.