CEO suspects Insider in Frax Finance X Hack

CEO Sam Kazemian suspects an insider involvement in Frax Finance’s X account hack, which was hacked on June 1 without a password breach.

An unauthorized individual purportedly infiltrated the X social media account of the crypto lending platform Frax Finance by gaining access to and manipulating existing credentials. Yet, how?

On June 1, Frax Finance’s X account was compromised. Frax Finance CEO Sam Kazemian asked his followers on X for assistance in contacting X customer service in a last-ditch effort to regain control.

As reported by users, X responds to complaints regarding compromised accounts in approximately 72 hours. Creating a support request with an associated email address and engaging in a back-and-forth involving submitting additional information as instructed constitutes the procedure.

Passwords were not tampered with in the Frax Finance hack

According to Elon Musk’s X, passwords should be changed in the event of account compromise. However, Kazemian asserted that the passwords had not been altered and deemed it impossible for any flaws within Frax Finance to have contributed to the breach.

He instead suspected the participation of an X-company insider. What he stated was:

“Frax Finance X account is compromised and appears to be inside job or social engineering within X since no password reset or other issues within Frax itself.”

Representatives of Frax Finance, Kazemian, or X have not provided any additional information regarding the account’s recovery over forty-eight hours after the breach.

As a result, as of this writing, the CEO’s advisory to refrain from sharing any website URLs from the compromised X accounts is still valid.

According to Kazemian’s assistance request responses, Frax Finance obtained a “direct line” to X’s customer support team.

Not just crypto protocols get hacked

The compromise of X accounts transcends cryptographic protocols. Recently, notable rappers, traders, and A-list personalities encountered the same predicament as Frax Finance on their social media platforms.

The compromised X accounts of these industry influencers and celebrities were utilized to promote a variety of cryptocurrencies, such as Luna2, ORDI, and memecoins inspired by celebrities.

Numerous community members were astounded to observe the hacker failing to capitalize on the fraud. A crypto analyst, Miles Deutscher, remarked, “Bro could have chosen ANY conceivable microcap to pump 10-20x, yet opted to shill ORDI and LUNA2 for a meager 10% wick.”