Cardano Foundation’s Social Media Hacked, False SEC Lawsuit Claims Spreading
Cardano Foundation’s social media recently fell victim to hackers, who managed to spread false information about the platform. The hackers used the compromised account to promote fake token sales, duping users out of over US$500K before being identified as a scam. This incident caused ADA’s price to drop by more than 4%, but despite the setback, its monthly performance remains strong, with a surge of 168%.
Charles Hoskinson, co-founder of Cardano, confirmed the hack on the Cardano Foundation’s X account. Although the breach was contained to X and did not affect other platforms or systems, the hackers successfully carried out a fake token sale plan before the scam was exposed.
The attackers posted misleading information about a Solana-based token purportedly linked to Cardano, named ADASOL, on the compromised account. They tried to lend credibility to the scam by linking to official resources like the Foundation’s website and a recent podcast episode. Another false statement claimed that the US Securities and Exchange Commission (SEC) had filed a lawsuit against the Cardano Foundation, leading to the fake announcement that all support for ADA token would be terminated to comply with regulatory requirements.
Following the incident, ADA’s price experienced a dip of over 4%, currently standing at US$1.19. Nevertheless, Cardano’s performance over the past month has been impressive, with a surge of 168%. Additionally, Cardano’s total value locked (TVL) in decentralized finance (DeFi) has been on the rise, reaching nearly US$800M. It’s crucial for investors and users to stay cautious and always verify information from official and secure sources to avoid falling prey to scams in the cryptocurrency space.
