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Cardano Foundation’s Social Media Hacked, Spreads False SEC Lawsuit Claims and Scam Token Alerts
- Hackers used the compromised account to promote fake token sales, collecting over US$500K in trading volume before being flagged as a scam.
- The attackers posted false claims about a Solana-based token and an SEC lawsuit against Cardano.
- ADA’s price fell over 4% following the incident, but its monthly performance remains strong with a 168% surge.
Cardano’s co-founder Charles Hoskinson confirmed on Sunday that the Cardano Foundation’s X account was hacked that day.
While the Foundation clarified that the breach was limited to X and did not affect other platforms or systems, hackers had already executed a fake token sale plan that garnered over US$500K (AU$782K) in trading volume before it was flagged as a scam on DEX Screener.
Hoskinson blamed X for not having better security features on its platform.
Related: Crypto Surpasses Stocks in South Korean Trading as Investors Seek Risk Exposure
Hackers Promote Fake Solana-based Token
The attackers used the compromised account to post misleading information about the Cardano community. The first false announcement claimed the launch of a Solana-based token called ADASOL, described as “Cardano, reimagined for Solana’s speed and innovation”.
The fraudulent thread consisted of 13 detailed posts linking to official resources such as the Foundation’s website and a recent podcast episode to lend credibility to the scam.
After removing the initial post, the hackers published another false statement that generated over 250,000 views. In it, they claimed that the US Securities and Exchange Commission (SEC) had sued the Cardano Foundation.
The post falsely claimed that the Foundation was halting all support for the ADA token to comply with regulatory requirements.
In light of this unexpected legal action, we have made the difficult decision to immediately cease all support towards the $ADA token to ensure compliance with regulatory requirements.
Cardano Foundation hacker
When a community member questioned the legitimacy of the notice, a team lead at the Cardano Foundation confirmed the account had been compromised. The official Cardano Community X account also clarified, advising followers to ignore any content from the compromised handle.
ADA Drops Following Incident
Following the news, the ADA price dropped over 4%, currently priced at US$1.19 (AU$1.86). However, ADA’s performance is considerably stronger on the monthly timeframe, surging 168% in the last 30 days.
Related: XRP Dips, Analyst Says Momentum Will Continue as Altseason Picks Up Steam
Cardano’s total value locked (TVL) is also gaining traction in decentralised finance (DeFi). As reported by Crypto News Australia, Cardano’s TVL peaked at nearly US$800M (AU$1.08B).
Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
