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The X account of the Cardano Foundation was breached on Sunday by an attacker who disseminated misleading information regarding an SEC lawsuit.
In a message directed at Cardano holders, the intruders claimed that the organization would halt ADA trading across all exchanges. “We have been served with a lawsuit by the US Securities and Exchange Commission on December 8, 2024,” the message stated.
Blockchain investigator ZachXBT highlighted the breach on his Telegram channel, advising users to refrain from clicking on any links that were shared.
Source: ZachXBT/Telegram
The ambiguous communication to Cardano holders emphasized an “unexpected legal action” from the US regulatory body. The implied suspension of support for the ADA token indicated that the foundation is focusing on adhering to regulatory standards.
The unverified false announcement attracted over 250,000 views before it was removed by Cardano.
A team leader at the Cardano Foundation acknowledged the breach in response to a community member’s inquiry on X. He stated that the organization is aware of the situation and “on it.”
Confirmed, we’re on it. Please create awareness
— michael.ada
(@michaeldotada) December 8, 2024
(@michaeldotada) December 8, 2024
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Additionally, Cardano CEO Charles Hoskinson mentioned in a separate post on X that the Foundation’s account had been compromised. “Try harder hackers,” Hoskinson remarked. He also criticized X for its inadequate security measures.
Given that the CF account was hacked, it’s a good opportunity to re-visit a change X could make that would dramatically improve security for all users https://t.co/oaThTPI5wi
I will implement it for free @elonmusk. Just light the beacon— Charles Hoskinson (@IOHK_Charles) December 8, 2024
Cardano Hackers Promote Fake ADASol Token
The attackers exploited the compromised account to advertise the sale of a fraudulent Solana-based token. Named ADASol, the malicious actors characterized the token as “Cardano, reimagined for Solana’s speed and innovation.”
Through a series of posts, the hackers linked the Foundation’s latest podcast episode and website to lend credibility. The counterfeit ADASol token generated around $500,000 in trading volume before plummeting by 99%.
Consequently, Cardano (ADA) fell by 4% to $1.191, further declining to $1.150. The token is currently trading at $1.174.
Nonetheless, ADA’s performance has been notably robust, increasing by 168% over the past 30 days. Furthermore, the total value locked (TVL) is also gaining momentum in decentralized finance (DeFi). Earlier this month, Cardano’s DeFi ecosystem reached an all-time high TVL of over $700 million.
The post Cardano X account Hacked, Spreading False SEC Lawsuit Claims appeared first on Cryptonews.
