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Scam Warning: Is Gemini Filing for Bankruptcy? Phishing Email Spreads Panic

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By on April 1, 2025 Altcoin, Bitcoin, Regulations, Trading, Web3
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The post Scam Warning: Is Gemini Filing for Bankruptcy? Phishing Email Spreads Panic appeared first on Coinpedia Fintech News

A warning is making the rounds in the crypto community as scam emails claiming that Gemini has filed for bankruptcy are being sent out. The fraudulent message urges recipients to protect their funds by withdrawing to an “Exodus wallet,” even providing a fake seed phrase to trick users.

Red Flags to Watch Out For:

The scam email, which appears to come from a suspicious address, falsely claims that a security breach in late 2024 compromised $1.2 billion in cold storage reserves. It falsely states that, due to operational and regulatory hurdles, Gemini is filing for bankruptcy protection.

“We are writing to inform you that, as of March 31, 202%, Gemini Trust Company, LLC has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court. This step follows a significant financial setback caused by a security broach at a third-party custodial service we relied on, resulting in substantial losses. We regret the impact this has on our users and are committed to helping you secure your assets during this process,” the fake email read.

Many people have reported receiving similar emails, causing panic and confusion—just in time for April 1st, making it feel like an elaborate April Fools’ joke. But this isn’t a joke. It’s a scam designed to steal your crypto.

Crypto experts and community members are urging everyone to stay calm, double-check any communications from official sources, and never click on links or provide personal information in suspicious emails.

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