In a series of coordinated cyberattacks, a group of scammers has targeted influential figures in the crypto space, compromising their Twitter accounts to promote phishing scams. The victims include prominent individuals such as Pudgy Penguins founder Cole Villemain, DJ and NFT collector Steve Aoki, Bitcoin Magazine editor Pete Rizzo, and even renowned crypto skeptic Peter Schiff. These high-profile breaches have resulted in the theft of nearly $1 million worth of cryptocurrency, signaling a growing concern within the crypto sector.
The orchestrated hacks have unfolded over several weeks, with the attackers utilizing various methods such as SIM swaps and potential access to a Twitter admin panel. ZachXBT, a blockchain sleuth, discovered multiple wallets associated with the phishing scams, shedding light on the extent of the theft. Unfortunately, the slow response from Twitter Support allowed some fraudulent tweets to remain active for extended periods, giving scammers ample time to defraud unsuspecting victims.
Among the victims, Cole Villemain, founder of Pudgy Penguins, a popular NFT project, had his account compromised, leading to the dissemination of fraudulent links. Similarly, Steve Aoki, known for his involvement in the NFT space, fell victim to the scam, while Pete Rizzo, an editor at Bitcoin Magazine, witnessed his account hacked to promote an implausible connection to tokenized gold in Decentralized Finance—a concept far removed from his well-known stance on cryptocurrencies.
Even Peter Schiff, a vocal critic of cryptocurrencies, was not spared from the scammers’ relentless pursuit. His account was hijacked to endorse a suspicious link related to tokenized gold, highlighting the audacity of the perpetrators.
ZachXBT has called on Twitter Safety to conduct thorough investigations into each attack, emphasizing the magnitude of the stolen funds, which now approaches seven figures. Immediate action is crucial to prevent further financial harm to the crypto community.
When the scammer gains control of a Twitter account, phishing scams are tweeted out almost immediately. Slow response times from Twitter Support have resulted in some of these tweets staying up for many hours and even days
@ZachXBT on Twitter
This recent wave of Twitter hacks follows a similar incident involving the Indian High Commission’s Twitter account, which was exploited by scammers to promote a Ripple (XRP) giveaway scam. In this case, scammers impersonated a prominent XRP community influencer, WrathofKahneman, to lure unsuspecting individuals into a fraudulent airdrop scheme. The hackers aimed to redirect users to a blog post allegedly written by Ripple CEO Brad Garlinghouse, promising access to a 100,000,000 XRP airdrop pool.
While no reports of asset losses have emerged thus far, it remains unclear why verified Hindi Twitter accounts, such as that of News 24, were specifically targeted. These incidents underscore the urgent need for enhanced security measures on social media platforms, as cybercriminals continue to exploit the trust and influence wielded by notable figures to defraud innocent individuals.
The impact of these hacks extends beyond the immediate financial losses suffered by victims. They erode public confidence in the security of cryptocurrencies and the overall crypto sector, highlighting vulnerabilities that need to be addressed promptly. With the growing popularity and adoption of digital assets, bolstering security measures and educating users about potential scams is essential to protect the integrity of the industry.
As the crypto community grapples with the aftermath of these targeted attacks, it is crucial for individuals and platforms alike to remain vigilant and take proactive steps to safeguard their digital assets. Increased cooperation between social media companies, law enforcement agencies, and the crypto community will be vital in identifying and bringing these cybercriminals to justice. Only through collective efforts can the industry mitigate the risks posed by such scams and foster a safer environment for participants in the exciting world of cryptocurrencies.