Monday, July 22, 2024
Home Cryptocurrency Frax Finance founder claims insider activity at X led to account hack

Frax Finance founder claims insider activity at X led to account hack

by xyonent
0 comment
Hack Cover.jpg

Frax Finance founder Sam Kazemian claims that the hack of the project’s official account was an inside job at X.

The breach, which occurred on June 1, saw the decentralized stablecoin protocol behind FRAX USD lose access to its X-account.

Frax Finance Hacked

In a June 3 Telegram post, Kazemian Mentioned The Frax Finance team said they are “fairly confident” they have identified the perpetrator, an alleged “serial fraudster” known to blockchain research firm ZachXBT.

“We will do everything in our power to bring that person to justice,” Kazemian assured. He clarified that the leak was not the result of a security flaw or a phishing attack aimed at the Frax Finance team. “It was an inside job,” he stressed.

The incident occurred on June 1, when the Frax Finance X account was compromised. To regain control, Kazemian urgently reached out to X’s followers, asking for their assistance in contacting the platform’s customer service. Shortly after the hack, he posted: “If anyone has a direct phone number for the X account/customer service, please send me a DM.”

X typically advises users to change their passwords if an account compromise is detected, but Kazemian maintained that passwords had not been tampered with and that there were no internal security issues within Frax Finance that could have led to the intrusion. Instead, he pointed to the possibility of social engineering and insider involvement at X.

At present, Frax Finance’s X account remains active but has not seen any new posts since the hack. To date, neither X nor CEO Elon Musk have made any public comment about the breach.

1 X user Commented Regarding this situation, he emphasized that X’s crypto authentication capabilities need to be improved in order for the company to maintain its status as a “cryptocurrency hub.”

Inside bribery linked to pump-and-dump scheme

The incident at Frax Finance is the latest in a series of hacking incidents targeting crypto projects and allegedly the work of insiders at X. In late May, a crypto trader known as GCR reported that his own X account had been similarly compromised.

“Two months ago, I was informed by Twitter officials that bribes had been given to gain access to my account, after which we stepped up security. However, security cannot be ensured if X employees are accepting money for admin access,” GCR said.

According to GCR, attackers took over his account through bribery and used it to further a pump-and-dump scheme involving ORDI and LUNA2.

ZachXBT later suggested that developers of Solana-based meme coin CAT may have been involved in the hack, but it has yet to be confirmed whether the same group is behind the attack on Frax Finance.

Special Offers (Sponsored)

Free $600 on Binance (CryptoPotato exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 on Binance. (Full details).

BYDFi Exchange Exclusive Offer for 2024: Up to $2,888 in welcome rewards, sign up using this link and open a 100 USDT-M position for free!

You may also like

Leave a Comment

About Us


At InvestXyon, we empower individuals with knowledge for informed investing, financial navigation, and secure futures. Our trusted platform covers investments, stocks, personal finance, retirement, and more.

Feature Posts


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!