In a recent crypto scam, several high-profile X accounts, including those of Yahoo News UK and Lenovo India, were hacked and used to promote a fraudulent Solana meme coin named $HACKED. This pump-and-dump scheme attempted to capitalize on the popularity of meme coins by tricking unsuspecting followers into investing. Surprisingly, despite the widespread nature of the scam, the hackers made minimal profits, with top traders only earning around $1,000.
Let’s take a closer look at the scam, how it unfolded, and its implications for the cryptocurrency world.
The Anatomy of the Solana Meme Coin Scam
On September 18, 2024, it was revealed that the X accounts (formerly Twitter) of major global organizations, including Yahoo News UK, Lenovo India, and even institutions like the World Health Organization (WHO) and the European Union in Brussels, were compromised. These accounts were used to promote a Solana meme coin called $HACKED, with the aim of pumping its value before quickly selling off, in what’s known as a pump-and-dump scheme.
Screenshots shared by popular crypto sleuth ZachXBT showed that the hacked accounts posted messages encouraging followers to buy into the $HACKED coin. The scammers boldly announced their control over the accounts, stating:
“THIS IS HACKED ACCOUNT!!!! INTRODUCING $HACKED ON SOLANA on each account we hack, we publish the token address so we pump it and make profits together.”
The goal was simple: create hype around the coin, artificially inflate its value, and then sell it off before the price collapsed, leaving late investors with massive losses.
How Did the Scam Unfold?
Meme coins, particularly those on platforms like Solana, have gained significant attention over the past year, often due to their speculative and volatile nature. This made them a prime target for scammers looking to exploit the meme coin frenzy.
Hackers managed to gain control of the compromised X accounts by what is believed to be a permissions-based breach. ZachXBT suggested that the accounts likely granted permissions to a malicious app or website, allowing hackers to post directly through their profiles. This type of hack emphasizes the importance of regularly checking the permissions granted to third-party apps connected to social media accounts.
ZachXBT advised users to:
- Navigate to Settings on X.
- Go to Security and account access.
- Select Apps and Sessions or Connected apps to revoke permissions for any suspicious or unused apps.
The Outcome: Minimal Profits for Hackers
Interestingly, despite their widespread efforts, the hackers reportedly lost money in this scam. According to ZachXBT, the market cap for $HACKED was only around $67,000, with top traders managing to earn just $1,000. In total, the scammers managed to remove liquidity from the project, profiting a mere $8,000.
For context, pump-and-dump schemes typically involve creating artificial demand for a low-cap coin, pushing its price up rapidly. Once the price peaks, the scammers sell off their holdings, leaving unsuspecting investors with devalued assets. This strategy relies heavily on hype and volume, which is likely why the scammers targeted major X accounts to gain credibility and reach.
The Growing Threat of Crypto Scams in 2024
Unfortunately, this latest meme coin scam is just one of many hacks and security breaches affecting the crypto space in 2024. While the $HACKED scam may not have been highly profitable for its perpetrators, it highlights a growing trend of cybercriminals targeting social media platforms and decentralized finance (DeFi) protocols.
Earlier this year, DeltaPrime DeFi protocol lost nearly $6 million following a security breach on the Arbitrum Network, and Ethena Labs, the organization behind the decentralized synthetic dollar protocol, had to suspend its website after a domain hack. These incidents underscore the importance of robust security practices within the crypto ecosystem, both for individual users and large organizations.
Protecting Yourself from Future Scams
With crypto hacks on the rise, it’s essential for individuals and organizations alike to be vigilant about their online security. Here are a few best practices to protect against similar attacks:
- Regularly Review Permissions: As mentioned earlier, always check the apps and services connected to your accounts. Revoke access for any suspicious or outdated platforms.
- Enable Two-Factor Authentication (2FA): Adding an extra layer of security can significantly reduce the chances of your account being compromised.
- Use Hardware Wallets: When dealing with cryptocurrencies, storing your assets in a hardware wallet can protect you from online attacks.
- Stay Informed: Following trusted crypto analysts and cybersecurity experts like ZachXBT can help you stay updated on the latest threats and scams in the space.
- Avoid FOMO: Scammers often prey on fear of missing out (FOMO). Always do your own research before investing in any cryptocurrency, especially meme coins.
Conclusion: A Cautionary Tale
The Solana meme coin scam involving $HACKED is a reminder of the growing sophistication of cybercriminals in the crypto space. While this particular scam didn’t yield significant profits for the perpetrators, it highlights the importance of security awareness for both individual investors and large organizations. With hackers targeting high-profile X accounts, users must be extra cautious about their online interactions and the permissions they grant to third-party apps.
As the crypto market continues to evolve, so too will the tactics used by scammers. Staying informed and taking proactive steps to protect your assets can help you avoid falling victim to these schemes.
ENG WANJIKU
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