Cardano Foundation’s X Account Hacked: Fake ADA Token Scam Unveiled - Crypto Economy

TL;DR

• The Cardano Foundation’s X account was hacked, leading to the promotion of a fake token called ADAsol and false claims about an SEC lawsuit.
• The ADAsol token scam generated over $500,000 in trading volume before being exposed, and the false SEC lawsuit claim led to a brief 4% drop in ADA’s price.
• Cardano founder Charles Hoskinson addressed the hack, urging the community to disregard posts from the compromised account and calling for enhanced security measures.
  

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In a recent security breach, the Cardano Foundation’s official X account was hacked, leading to the promotion of a fraudulent token and false claims about regulatory issues. The incident, which occurred on December 8, has raised concerns within the cryptocurrency community about the security of social media accounts and the potential for scams.

The Fake ADAsol Token Scam

The hackers used the compromised account to promote a fake token called ADAsol, claiming it was a new Cardano-branded token on the Solana blockchain. The fraudulent posts included links to legitimate Cardano resources, such as the Foundation’s website and a recent podcast episode, to appear credible.

This deceptive strategy led to significant trading activity, with the ADAsol token generating over $500,000 in trading volume before users realized it was a scam. The token’s value quickly plummeted by 99% as the truth emerged.

False Claims of an SEC Lawsuit

Following the ADAsol scam, the hackers released another misleading announcement, asserting that the U.S. Securities and Exchange Commission (SEC) had initiated legal action against the Cardano Foundation.

The post incorrectly claimed that the Foundation would stop all backing for the ADA token to meet regulatory standards. This erroneous information sparked fear among investors, resulting in a brief decline of 4% in ADA’s price.

Community Response and Security Measures

Cardano founder Charles Hoskinson quickly addressed the hack on social media, confirming the breach and urging the community to disregard any posts from the compromised account.

https://twitter.com/IOHK_Charles/status/1865782995728404518

The Cardano Foundation has since removed the fraudulent posts and is working to restore security to the account. Hoskinson also called on X owner Elon Musk to implement enhanced security measures for social media accounts to prevent similar incidents in the future.

Impact on ADA’s Market Performance

Cardano’s native token, ADA has been struggling ever since the news broke. It experienced a massive decline, with the token’s value dropping nearly 7% and trading at $1.12. Over the past 30 days, however, ADA’s price has surged by 156%, reflecting strong market confidence in the Cardano ecosystem, despite recent incidents.