Scammers pretending to be Kirkland & Ellis LLP restructuring associates are sending phishing emails to customers of bankrupt crypto lender Celsius Network LLC in an effort to access crypto wallets, a Kirkland attorney told a bankruptcy court.
Phishing attempts targeting Celsius customers are also occurring via telephone, Joshua Sussberg, a partner at Kirkland and Celsius’ lead bankruptcy attorney, told the US Bankruptcy Court for the Southern District of New York in court papers Wednesday.
The phishing emails highlight a growing schism in cryptocurrency bankruptcies between privacy and court transparency.
The scam emails portray the Celsius logo and tell customers to click on a link to a spreadsheet to view their claim, according to court papers. The customer is asked to provide an address to their personal digital wallet, recommends performing a “test transaction,” and says the company will “issue an initial refund installment equal to 25% of the value of customer assets.”
The email names a Kirkland associate, and also says it comes from the Celsius legal team.
Judge Martin Glenn in September ruled that individual Celsius customers’ home and email addresses could be redacted, but their names could not. Information about business entities that are creditors were also required to be revealed. Creditors must also reveal their names to provide proofs of claim, Glenn ruled.
The case is Celsius Network LLC, Bankr. S.D.N.Y., No. 22-10964, notice 11/30/22.
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