Cardano’s X Account Hijacked to Share Fake SEC Allegations

Highlights:

• Hackers reportedly hijacked Cardano’s X account to spread false lawsuit actions against the crypto platform from the SEC.
• Cardano Foundation’s CEO confirmed the unfortunate incident and called for improved security features on the X platform.
• Despite recovering the compromised X handle, ADA has dropped by over 5% after the hack incident.

Around the late hours of yesterday, hackers targeted Cardano’s official X handle. After successfully breaching the account, the cyber thief shared a tweet notifying the public that the United States Securities and Exchange Commission (SEC) had filed a fresh lawsuit against Cardano on December 8.

Furthermore, the cryptic tweet noted that, following the false legal action, it intends to halt support for ADA tokens pending the court case resolution. “We understand the impact this may have on our valued community members and stakeholders, and we assure you that we are committed to providing support during this transition,” the shared tweet noted. It also added that it will communicate with enthusiasts on new developments as events unfold.

Is this true or was the Cardano Foundation account hacked?

Can someone confirm this? pic.twitter.com/1A7c51ZctQ

— Sssebi🦁 (@Av_Sebastian) December 8, 2024

Considering the nature of the tweet and the sensitivity of the conveyed information, the now deleted X post attracted considerable attention, with 250K views, thousands of likes, retweets, comments, and shares. Expectedly, market participants seemed more concerned about the price impacts for ADA, considering that such news could pose significant setbacks for the token.

Cardano’s CEO Reacts to the Hack Incidence

During the heat of the hack incident, several market participants were unsure about the authenticity of the news. However, clarity emerged when “Michaeldotada,” a team lead at the Cardano’s Foundation, confirmed the incident. He called for increased awareness about the actual state of events, adding that the platform is making efforts to recover its handle.

Confirmed, we’re on it. Please create awareness

— michael.ada⚡ (@michaeldotada) December 8, 2024

Similarly, Charles Hoskinson, the Cardano Foundation Chief Executive Officer (CEO), confirmed the unauthorized access to his platform’s X handle. According to him, the incident provides an ideal opportunity to revisit possible changes X can make to improve security. He urged X’s owner, Elon Musk, to make a move for such security advancements while he implements them at no cost.

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

Hackers Cease Opportunity to Advertise A Fake Token

Aside from sharing the fake lawsuit, the scammers leveraged the compromised platform to bring users’ attention to the fraudulent ADAsol token. The hackers portray the coin as a Solana-based entity with unique features and price appreciation potential. Like most scam projects, ADAsol amassed $500,000 in trading volume and surged by over 500%. Eventually, the token crashed by over 99%.

🚨Cardano Foundation X account has been compromised.

I reached out to someone at CF, they have confirmed it's been hacked. Do not trust any links to dApps, or new tokens being launched on X.

ADAsol IS A SCAM pic.twitter.com/jT5iCs5oyS

— big pey (@bigpeyYT) December 8, 2024

At the time of press, no authentic information has emerged to account for the number of affected crypto investors. However, considering the significant price surge recorded before the crash, chances abound that some unsuspecting traders might have fallen victim. Situations like the one described in this insight highlight the importance of due diligence investigations before delving into any project.

ADA Loss Over 5% Value Within 24 Hours

The past few days saw ADA take the crypto market by storm, evidenced by a 155.5% increment that saw the token break above the $1 price level. However, the latest hack incident might have negatively impacted the token’s trajectory. Cardano is down by about 5.7% in the past 24 hours, reflecting approximately $1.12 in selling price.

Aside from the hack incidence, ADA’s price drop could stem from mirroring the generalized market decline. CoinGecko displayed that the entire crypto market valuation dropped by about 2.7% in the past 24 hours, reducing its valuation from over $4 trillion to roughly $3.7 trillion.