Inside the $500K Memecoin Scam That Targeted Crypto Enthusiasts on X
In Brief
A hacker compromised 15 Twitter accounts and amassed $500,000 through fake memecoins, highlighting ongoing threats in the cryptocurrency field and flaws in social media platforms.
A series of phishing schemes that have caused large financial losses have rocked the crypto world in recent weeks. A hacker has successfully compromised 15 accounts on X, formerly known as Twitter, and amassed around $500,000 by pushing fake memecoins, according to blockchain investigator ZachXBT. This event demonstrates the continuous threats faced by hackers in the cryptocurrency field, as well as the flaws in social media platforms.
Attack Strategy
Using a popular phishing tactic, the hacker sent phony copyright infringement letters by posing as the X support staff. The purpose of these messages was to make users feel compelled to click on dangerous links that took them to phishing websites. Once on these websites, individuals were duped into changing their two-factor authentication (2FA) settings and passwords. The hacker was able to take over the compromised accounts using this information.
According to ZachXBT, a large number of the compromised accounts had sizable followings and were mostly focused on cryptocurrency. Accounts connected to Kick, Cursor, The Arena, and people like Brett and Alex Blania were among the notable victims. Memecoin enthusiasts who are actively looking for investment possibilities in the erratic cryptocurrency market are frequently the target audience for these accounts.
The hacker’s use of phishing emails adhered to a predetermined script designed to maximize efficacy. The attacker took advantage of users’ confidence and sparked quick action by imitating official X messages. Users were persuaded to interact with the phishing sites in large part by the urgency produced by allegations of copyright infractions.
Users unintentionally gave the hacker access to their accounts after changing their login information on these fraudulent platforms. This approach emphasizes how crucial it is for users to exercise caution when they get unexpected messages from service providers.
Effects on the Community and Users
Beyond only causing personal financial losses, these hacks also raise questions about the security procedures used by social media companies. Large audiences—some surpassing 200,000 followers—who depended on these channels for reliable investing advice and developments in the crypto space were attracted to several of the hijacked accounts.
Posting false information regarding new memecoins under the pretense of official releases from these reliable accounts was the hacker’s tactic. In addition to defrauding individual investors, this damaged confidence in the larger cryptocurrency ecosystem.
ZachXBT observed that each memecoin fraud used six deployer addresses, which were connected to all account takeovers. By moving the stolen money across two distinct blockchain networks—Solana and Ethereum—the attacker aimed to hide its source. Investigators find it more difficult to track down the origin of stolen assets as a result of this obfuscation.
Suggestions for Users
ZachXBT has offered a number of suggestions for customers to improve their protection against similar attacks in light of this occurrence. Limiting the reuse of email addresses across several providers is one important recommendation. Reusing email addresses might make you more vulnerable in the event that one of your accounts is hacked.
It’s also critical to use two-factor authentication (2FA) on key accounts. Even though 2FA may already be in place for many users, making sure it is configured properly and employing security keys will greatly increase account protection against unwanted access.
More General Crypto Scam Context
This exploit fits into a broader pattern where hackers are increasingly using social media sites to advertise fake crypto initiatives. The emergence of memecoins—cryptocurrencies that are frequently made as jokes or memes—has drawn a lot of investors seeking rapid returns. Unfortunately, fraudsters may now easily take advantage of this setting.
Chainalysis estimates that 303 significant events totaling over $2.2 billion were stolen from different cryptocurrency platforms in 2024 alone. This is a 21% rise over prior years, suggesting that the risk of fraud and theft is increasing along with the use of cryptocurrencies.
The 53% month-over-month drop in phishing losses in November indicates that, even while some hackers may be temporarily withdrawing or changing their strategies, risks are still common during moments of high trade, like the holidays.
The latest X account hacks illustrate persistent issues in the crypto ecosystem as well as serious flaws in social networking sites. It is becoming more and more crucial for people to maintain vigilance and implement strong security procedures as hackers modify their strategies and take advantage of user confidence through intricate phishing techniques.
Investors should take proactive steps to safeguard their funds and be aware of the hazards involved with trading cryptocurrencies. In addition to users, platforms like X also have an obligation to improve security protocols and inform their user base of such dangers.
As seen by this occurrence, bitcoin offers potentially profitable possibilities, but it also has inherent hazards that need to be properly controlled through knowledge and preventative security measures.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
