On December 8, 2024, the Cardano Foundation’s X account was compromised by a malicious actor, leading to the promotion of a fraudulent token called “ADAsol.” The scam post falsely claimed that Cardano would cease supporting ADA, its native cryptocurrency, and encouraged users to invest in the fake token. The hacker’s actions generated around $500,000 in trading volume before the token plummeted by 99%, leaving many investors with significant losses. The Cardano Foundation responded quickly, removing the posts and assuring the public that no other aspects of the Cardano ecosystem were affected by the attack.
Charles Hoskinson, the founder of Cardano, confirmed the hack on social media, warning followers not to trust any links from the compromised X account. Although the fraudulent posts were removed shortly after they appeared, the damage had already been done, as the fake token quickly gained traction in the market. The Cardano Foundation is working diligently to regain control of its X account and has advised users to exercise caution when interacting with the platform in the meantime.
This attack highlights the growing threat of social media hacks targeting cryptocurrency projects and companies. Similar incidents have occurred recently, including attacks on other high-profile crypto entities such as Compound Finance, Symbiotic, and EigenLayer, where malicious actors used compromised accounts to promote phishing links and fraudulent tokens. These attacks serve as a stark reminder of the risks associated with social media platforms, where malicious content can spread rapidly, leading to financial harm for unsuspecting users.
In response to this incident, the Cardano Foundation has taken steps to mitigate the risks associated with compromised accounts. The organization is focused on securing its social media presence and restoring user confidence. Meanwhile, users are urged to remain vigilant, refrain from interacting with suspicious links, and report any potential phishing attempts to protect their assets and personal information.
Reference:
