Users are receiving fraudulent emails claiming that cryptocurrency exchange Gemini has filed for bankruptcy. The message states that the company has filed for Chapter 11 protection following a $1.2 billion loss of funds, urging recipients to urgently transfer their assets to a specified Exodus wallet for “safekeeping.”
Fake Claims and Phishing Scheme
The email contains false information about an alleged hack of a third-party custody service in late 2024 and the loss of significant reserves. Users are presented with a pre-generated seed phrase, allegedly granting access to a new wallet, but in reality designed to steal funds.
Confusion Around April 1
The phishing campaign began just before April Fools’ Day, which only added to the confusion. Some recipients believed it might be a badly timed joke, especially given the official tone of the message.
User Kamari The Creator asked AI assistant Grok about the situation. In response, the AI suggested it could be an April Fools’ prank and noted that there was no confirmation of Gemini filing for bankruptcy. The company has not commented officially on the matter.
In May 2024, Gemini had completed user repayments totaling $2.18 billion. Despite past issues — including regulatory fines and data leaks — there have been no indications of impending bankruptcy.
User Data from Binance and Gemini for Sale on the Dark Web
This incident follows reports that hackers on underground forums are selling databases containing personal information of clients from Gemini and Binance.
According to Dark Web Informer, a user named “AKM69” posted an ad offering an archive allegedly containing 100,000 records related to Gemini users.
The leaked data reportedly includes:
- Full names.
- Email addresses.
- Phone numbers.
- Geolocation data.
Most of the entries are said to be from U.S. citizens, but the dataset also includes users from the UK and Singapore.
Experts Warn Against Clicking Suspicious Links
In light of this phishing attempt, cybersecurity experts are repeating warnings not to click on unsolicited messages urging users to transfer funds. They stress the importance of verifying all information through official channels.
Neither Gemini nor any other legitimate exchange will ever:
- Ask users to submit personal data or seed phrases.
- Request fund transfers via email.
Even if a message appears credible, it could be a malicious attack.
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This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
