Frax Finance, a decentralized finance (DeFi) protocol, points to an insider as the culprit behind a recent hack of their X account.
According to Frax Finance founder Sam Kazemian, the team is “reasonably confident” they’ve identified the perpetrator. The hack, which took place in early June, reportedly severed access between the FRAX USD stablecoin protocol and its X account.
Frax Finance took to Telegram on June 3rd to announce they have a strong lead on the identity of the attacker behind their X account compromise. The project’s founder, Sam Kazemian, alleges the culprit is a known “serial scammer” familiar to blockchain investigator ZachXBT.
“We will try our best to bring that person to justice. And again to be clear to anyone reading this: this wasn’t a security issue and no one on the team was phished or anything. This was an inside job.”
Sam Kazemian
Frax Finance attributed the early June hack of their X account to either an inside job or social engineering on X’s end, according to a statement from founder Sam Kazemian on his X account. This suggests a targeted attack rather than a general security flaw or phishing attempt aimed at Frax. Notably, while the Frax Finance X account remains active, there haven’t been any new posts since the incident.
The recent compromise of Frax Finance’s X account adds another layer to the growing concern about insider threats at X. Neither the platform nor its CEO, Elon Musk, have publicly addressed the situation.
This follows a similar incident in late May, where crypto trader GCR reported a compromised X account used for an ORDI pump-and-dump scheme, allegedly achieved through bribery. Blockchain investigator ZachXBT speculated that developers behind the CAT memecoin on Solana might be involved. It remains unclear if the same group is behind the attack on Frax Finance.
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