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Frax Finance’s X Account Compromised, CEO Suspects Insider Involvement

ByDayne Lee

Jun 4, 2024
Frax Finance’s X Account Compromised, CEO Suspects Insider Involvement

Frax Finance’s X Account Compromised, CEO Suspects Insider Involvement

The crypto lending platform Frax Finance recently experienced a security breach of its X social media account. This incident has sparked concerns within the crypto community and raised questions about the security measures at Elon Musk’s X (formerly Twitter). Frax Finance CEO Sam Kazemian has pointed to the possibility of an insider at X being involved, complicating the situation further.

Details of the Incident

Initial Breach and Response

On June 1, Frax Finance’s X account was compromised, with the hacker gaining control without altering existing passwords. In response, CEO Sam Kazemian urgently reached out to his followers for help in contacting X’s customer service to regain control of the account.

Customer Service Interactions

Reports indicate that X typically takes about 72 hours to respond to complaints concerning compromised accounts. The standard procedure involves initiating a support request via a linked email and providing additional information as required during the resolution process.

Security Protocols and Speculations

Lack of Password Tampering

Despite standard advice to change passwords during security breaches, Kazemian confirmed that the account’s passwords remained untouched. He also stated that there were no internal issues at Frax Finance that could have led to the hack, leading him to suspect internal foul play or social engineering within X itself.

Ongoing Challenges and Company Communications

Status of Account Recovery

More than 48 hours post-hack, there have been no updates from Frax Finance, Kazemian, or X representatives about the recovery of the account. Consequently, Kazemian has advised the public to avoid clicking on any links shared from the compromised account.

Engagement with X’s Support

It appears that Frax Finance has managed to establish a direct line to X’s customer support, although the effectiveness of this communication remains unclear.

Broader Implications and Industry Context

The hacking incident at Frax Finance is not an isolated event; numerous accounts belonging to high-profile traders, celebrities, and other public figures have also been compromised in similar ways. These breaches have been exploited to promote various cryptocurrencies and schemes.

Crypto analyst Miles Deutscher commented on the inefficacy of the hackers, noting that despite having the opportunity to significantly manipulate market prices with lesser-known cryptocurrencies, the hackers chose to promote ORDI and LUNA2, achieving only modest gains.

AspectDetail
Date of IncidentJune 1
Response TimeApproximately 72 hours for X support
Suspected CausePotential insider involvement at X
CEO’s ActionsAdvised against clicking links from the account
Industry ImpactPart of a broader trend of social media account hacks

The security breach of Frax Finance’s X account raises significant concerns about the vulnerabilities of social media platforms used by cryptocurrency entities. The incident underscores the need for enhanced security measures and faster response strategies by social media companies, particularly when handling sensitive financial information. As the situation unfolds, the crypto community remains watchful for updates on the account’s recovery and any measures that might be implemented to prevent future incidents.


Featured image credit: Dan Taylor via Flickr

Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

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