Nikolas Sargeant
The Cardano Foundation's X account was compromised on Sunday by a threat actor posting false claims about an SEC lawsuit. In a note to Cardano holders, the hackers noted that the organisation will cease ADA trading on all platforms. "We have been served with a lawsuit by the US Securities and Exchange Commission on December 8, 2024," the note read.
The Cryptocurrency Misinformation Threat
Online blockchain sleuth ZachXBT flagged the hack on his Telegram account, warning users not to click any links posted. The cryptic message to Cardano holders stressed an "unexpected legal action" from the US regulator. The unverified false statement generated more than 250,000 views before Cardano removed it.
A team lead at the Cardano Foundation confirmed the hack in a reply to a community member's question on X. He said that the organization is aware and "on it". Cardano CEO Charles Hoskinson wrote in a separate X post that the Foundation's account was hacked. "Try harder hackers," Hoskinson added. He also blamed X for lacking better security features.
The perpetrators used the compromised account to promote Solana-based fake token sales. Dubbed ADASol, the bad actors described the token as "Cardano, reimagined for Solana's speed and innovation". In a series of several posts, the hackers linked the Foundation's recent podcast episode and website to make it legit. The fraudulent ADASol token generated approximately $500,000 in trading volume before crashing by 99%.
As a result, Cardano (ADA) dropped by 4% at $1.191, plunging further below to $1.150. The token is trading at $1.174 at press time. However, ADA's performance has been considerably stronger, surging 168% in the past 30 days. Additionally, the total value locked (TVL) is also gaining traction in decentralised finance (DeFi). Early this month, Cardano's DeFi ecosystem has reached an all-time high TVL of over $700 million.
