VeChain, a prominent blockchain-based protocol, became the latest victim of a cyber attack when its official X account was compromised on January 18, 2024. The hackers used the account to orchestrate a scam giveaway, targeting VeChain (VET) and Ethereum (ETH) holders with promises of lucrative returns. This incident adds to the growing list of cybersecurity breaches in cryptocurrency.

VeChain Falls Prey to Cryptocurrency Scam Hack

The attackers posted a tweet from VeChain’s hacked account, announcing a deceptive giveaway. They asked users to send a specified amount of VET or ETH to a particular address under the guise of returning double the amount sent. For instance, for every 1 ETH sent, the scam promised a return of 2 ETH, up to 800 ETH. Similarly, those sending 100,000 VET were promised 200,000 VET in return, with the minimum and maximum contributions set at 100,000 VET and 5,000,000 VET, respectively.

However, the crypto community quickly identified this scheme’s fraudulent nature. The pattern resembled a common scam tactic, where victims are enticed to send funds to an address with the false promise of receiving a higher amount. According to Etherscan data, the “contribution address” provided by the scammers had not received any assets as of the report, suggesting a heightened awareness among investors about such deceptive tactics.

Response and Recovery Efforts

VeChain’s team promptly regained control of their account, a critical step in averting potential financial losses for investors. The malicious post was deleted, preventing the scam from spreading further. Although the team has not yet released an official statement regarding the incident, their swift action in recovering the account has been acknowledged as a positive response to the cyberattack.

This event underscores the ongoing challenges faced by the cryptocurrency industry regarding security. The recent months have seen a surge in similar incidents, with various high-profile X accounts being cloned or hacked to promote scam giveaways. Notable examples include a deep fake video ad misusing Ripple CEO Brad Garlinghouse’s likeness and cloned accounts of Ripple CTO David Schwartz and Shiba Inu lead developer Shytoshi Kusama.

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The post VeChain Official Account Hacked, Used to Promote Scam Giveaway appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am