A new wave of phishing attacks is targeting former customers of the cryptocurrency lending platform BlockFi, which declared bankruptcy in 2022. Cybersecurity firm Kaspersky has detected that scammers are exploiting the ongoing asset distribution process stemming from that bankruptcy to trick victims into revealing the seed phrases for their cryptocurrency wallets, potentially leading to significant financial losses. This sophisticated phishing campaign highlights the continued risks facing cryptocurrency users even after a platform’s collapse.
BlockFi, once a prominent provider of high-yield interest accounts and crypto-backed loans, publicly announced its bankruptcy in November 2022. As part of its restructuring plan, the company began disbursing repayments to affected clients throughout 2024. This ongoing distribution is the key element scammers are leveraging to appear legitimate, preying on the hope of recovering lost funds. The increasing prevalence of these attacks underscores the need for heightened vigilance within the crypto community.
How the Scam Works
The scam begins with a deceptive lure: victims receive an email mimicking BlockFi’s official branding, inviting them to “claim the payment” they are supposedly entitled to. Clicking the link redirects users to a phishing page designed to look authentic. The site then prompts the user to “connect their wallet,” and crucially, asks for their seed phrase – a series of words that provides complete control over the cryptocurrency holdings within that wallet. Providing this seed phrase effectively hands over control of the funds to the attackers.
“These types of phishing attacks are widespread, capitalizing on real-world events to build trust and urgency,” explains Roman Dedenok, an anti-spam expert at Kaspersky. “Those who fall for these scams risk having their cryptocurrency wallets emptied. It is crucial to verify any communication through official channels and check the address from where the email originates for legitimacy.”
Identifying the Phishing Emails
The fraudulent emails are designed to be convincing, incorporating legitimate logos, color schemes, and language. However, several red flags can support identify them. Reports indicate that the emails often claim everyone receives the same payout amount – $4,163.71, regardless of their individual account history or claims filed – a clear indication of a scam. Malwaretips.com details how scammers are spoofing email addresses, using domains that appear official but are not legitimate BlockFi or Kroll addresses.
Protecting Yourself from Crypto Phishing
Kaspersky recommends several precautions to avoid falling victim to this or similar scams. Never click on links or respond to unsolicited emails. Protecting sensitive information is paramount: never share banking credentials, wallet seed phrases, or private keys through email or online forms.
Strengthening your digital security is also vital. Activate two-factor authentication (2FA) on all financial accounts, utilize reputable security solutions, and consider using a password manager to protect your credentials. These steps add layers of security that can significantly reduce your risk of becoming a victim of these increasingly sophisticated attacks.
- Do not click on links or respond to unsolicited emails.
- Protect your sensitive information. Never share banking credentials, wallet seed phrases, or private keys through emails or online forms.
- Utilize security tools. Activate two-factor authentication (2FA) on all financial accounts, use trusted security solutions, and consider using a password manager to protect your credentials.
The BlockFi bankruptcy has created a fertile ground for scammers, and vigilance is key. As the asset distribution process continues, users should remain skeptical of any unsolicited communications promising funds and always verify information through official BlockFi channels. The next major update regarding the BlockFi bankruptcy proceedings is scheduled for March 15, 2026, according to Kroll Restructuring Administration, the claims administrator for the case.
Have you received a suspicious email related to BlockFi? Share your experience in the comments below, and help spread awareness about this ongoing threat.
