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Animoca Brands, a prominent Hong Kong-based blockchain gaming and NFT company, recently revealed that its co-founder Yat Siu’s X account was compromised. The account was used to promote a fake crypto token, prompting the company to issue a public notice warning users.
In their statement, Animoca Brands clarified that there are no official token or NFT launches currently associated with the company. Users were urged to avoid engaging with the compromised account to prevent potential losses. The company assured the public that further updates would be provided once the account is restored.
Yat Siu co-founded Animoca Brands in 2014 with David Kim. Initially focused on mobile game development, the company pivoted to blockchain gaming and NFTs in 2018, becoming a leader in the Web3 space.
It seems that the @ysiu account might have been hacked ⚠️⚠️⚠️
— Kenta (@niutonapple) December 26, 2024
✍️Recently, he posted about @animocabrands launching the $ANIMOCA token on https://t.co/dvi59MdbIM, including a link to https://t.co/dvi59MdbIM for purchasing it.
The chart price skyrocketed until he deleted the… pic.twitter.com/2xHPLmRkVr
The compromise of Yat Siu’s X account is the latest in a growing trend of scams exploiting vulnerabilities within the Solana blockchain. These issues have made Solana a target for malicious actors seeking to defraud users.
Recently, the U.S. Department of Justice (DOJ) charged two California men, Gabriel Hay and Gavin Mayo, for orchestrating NFT rug pulls on both Ethereum and Solana. The fraudulent schemes involved fake projects like Vault of Gems and Faceless, defrauding buyers of over $22 million. This case is the largest NFT fraud prosecution undertaken by the DOJ to date.
Other high-profile scams on Solana include Canadian singer Drake’s account being hacked to promote the Solana-based meme coin Anita. These incidents have raised concerns about the platform’s security features and user vulnerability.
While Solana’s architecture prioritizes efficiency, it introduces several risks that make it more susceptible to scams than other networks.
Solana’s token account structure allows attackers to reassign ownership of assets using specific commands, rendering stolen funds virtually unrecoverable. This feature has been exploited in numerous scams, putting users’ holdings at significant risk.
Unlike Ethereum’s multi-step transaction approval process, Solana uses a one-step approval mechanism. This design enables immediate execution of malicious transactions, leading to irreversible losses. Additionally, Solana’s ability to bundle multiple sub-transactions into a single approval increases the risk of theft going undetected.
Scammers also exploit Solana’s Durable Nonce feature, which allows them to delay the execution of fraudulent operations. By postponing transactions, bad actors evade detection and catch victims off-guard, further exacerbating the risks.
As Solana-based scams rise, users must exercise caution. The combination of Solana’s design vulnerabilities and a lack of user awareness makes the platform an attractive target for bad actors.
Animoca Brands’ warning highlights the broader issue of security in the crypto space. The compromise of Yat Siu’s X account and other high-profile incidents underscore the need for vigilance. Users are advised to double-check the authenticity of accounts, avoid interacting with suspicious links, and employ robust security measures to protect their assets.
The compromise of Yat Siu’s X account serves as a stark reminder of the ongoing threats within the crypto ecosystem. As Solana’s vulnerabilities continue to be exploited, industry players and users must remain proactive in safeguarding their digital assets and ensuring secure interactions in the rapidly evolving Web3 landscape.
editor
A web 3 girl living in a web 2 world.
