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The Cardano Foundation’s X (previously known as Twitter) was hacked on December 8th followed by a false SEC lawsuit and promotion of a fake token named “ADAsol”. This incident has led to a price drop of 4% and seriously affected the market performance of ADA.
Hackers posted these two announcements on Cardano’s official X account and the posts were deleted once Cardano founder Charles Hoskinson officially confirmed the hack in his social media post.
Cardano Foundation X compromise and the decline of ADA
Cardano founder Charles Hoskinson officially confirmed that bad actors hacked Cardano Foundation’s official X account. The hackers spread a false lawsuit claim and promoted a fake token. According to the latest available information, hackers allegedly collected over $500K in trading volume before it was confirmed as a scam. This incident led to a serious decline in the market performance of ADA. ADA’s price reportedly showed a 4% decline after this incident. The authorities confirmed that the reported breach was limited to X and the other platforms were not affected at all. Charles Hoskinson confronted X for its limitations in security provisions and not having a reliable security feature on the platform.
The hackers made two fake announcements during this period. The first fake announcement was the announcement of a potential launch of a Solana-based token named ADASOL. The announcement came with a description, “Cardano, reimagined for Solana’s speed and innovation” and the fake post included 13 detailed posts that linked to the official resources of the Cardano Foundation. The latest statistics indicate that the fake token had already met over $500,000 worth of trading volume.
The second announcement was about an SEC lawsuit against the organization. According to the fake announcement, the Cardano Foundation had served with a lawsuit by the United States Securities and Exchange Commission (SEC) and they have decided to stop all support for the ADA token to follow the regulatory compliances of the Government. This post had gained 256,000 views on the platform. Both the posts were removed from X once it was confirmed as a fraudulent activity.
Technical experts at the Cardano Foundation worked diligently to restore the compromised account and made sure the hacking operation did not impact the organization’s other platforms. Users were cautioned by the authorities not to try any links from the Cardano Foundation’s official X account.
The depreciation of ADA due to the hacking!
The price of ADA has shown a significant downswing since the compromise of the official X account was reported. The false information has created enough buzz in the community. According to the latest market evaluation, the incident has affected the market performance of ADA.
The token’s price had reportedly dropped 4%. The token is currently valued at $1.18 (at the time of writing). The token still shows a decent market price despite having these noises in the ecosystem.
X account hacks are common nowadays?
The compromise of X account has been a common issue these days. A large number of users and agencies like Cardano have been facing this issue for a long time now. The official X account of Compound Finance was hacked in 2023 December. The hackers involved in the scam used their page to propagate phishing links to a website that was quite similar to the Compound Finance page.
A well-known staking protocol, Symbiotic also experienced an X account compromise in October 2024. The hacker reportedly posted a checklist that addresses the users about receiving points for interacting with the post. This was a phishing link, which led to a phishing site that is capable of stealing the actual Symbiotic tokens from the user’s wallets.
These two were most discussed in the entire ecosystem. People are concerned about the security capabilities of X. These continuous exposures to hacking will lead to the loss of trust in the audience and people will find it as a vulnerable platform.
The Cardano Foundation’s team has announced that they are actively working to restore the security of their official domains and to stay free from all possible digital threats and attacks. According to the backroom staff of Cardano Foundation, the confirmation regarding the restored access will be posted on the official LinkedIn page of Cardano Foundation. They also stated that the compromise of X account does not mean the other platforms of the Cardano Foundation are compromised or exposed to hacking.
Will officials of X address this as a serious issue?
The official response from the X team has not been available yet, they are still keeping their mouth closed regarding this repeated security issue. The authorities need to take this as a serious issue and try to resolve the issue as soon as possible.
We might see an action plan against these security vulnerabilities in the future. Otherwise, the trust and faith in X will be lost and people will not find X as a secure platform to engage and dwell.
