On December 8, hackers stole the Cardano Foundation’s X (previously Twitter) account, enabling them to disseminate false information and advertise a fraudulent coin named “ADAsol.” The attackers stated that the foundation will discontinue support for Cardano’s native cryptocurrency, ADA, in response to a bogus lawsuit filed by the United States Securities and Exchange Commission (SEC).
Charles Hoskinson, the founder of Cardano, confirmed the hack, but the damage had already occurred. The bogus ADAsol cryptocurrency gained $500,000 in trading volume before falling by 99%. The charity has subsequently removed the scam-related posts, including the false SEC letter, and is working to safeguard its account.
Although the hijacked account did not affect other areas of the Cardano ecosystem, users should refrain from clicking on any links until further information becomes available.
To avoid similar instances, firms should implement stronger security measures such as multi-factor authentication, employee training to detect phishing efforts, and proactive account monitoring. Ensuring safe systems and improving user knowledge are critical for mitigating the hazards of these increasingly widespread cyber threats.
