Animoca Brands’ co-founder Yat Siu’s X account was compromised to promote fake crypto token

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As a seasoned analyst with years of experience in the crypto space, I’ve seen my fair share of scams and hacks. The recent compromise of Yat Siu’s account associated with Animoca Brands is yet another reminder that we need to stay vigilant in this wild west of digital assets.

As a crypto investor, I recently learned about the alarming news that Animoca Brands has disclosed. It appears that the social media account of one of their co-founders, Yat Siu, has been hacked. This incident serves as a stark reminder to all of us in the crypto community to always prioritize security measures when it comes to our online assets and communications.

It’s been confirmed that the allegations about Animoca Brands planning to release a token or NFT on the Solana blockchain are false. These claims originated from malicious hacking activities.

In a recent statement, the software company from Hong Kong, specializing in game development, clarified that as of now, there’s no authentic token or NFT launch linked to Animoca Brands. They warned users to avoid any interaction with the hacked account. Once the account is back online, Animoca Brands will provide updates.

🚨 Sadly, it appears that @ysiu’s social media account has fallen into the wrong hands. It’s important to note that Animoca Brands has not officially launched any token or NFT. The post about a token launch on Solana is falsely attributed to a hacker, so please refrain from interacting with the account. Stay cautious and alert as we continue to address this situation.

We will keep you updated on further developments.

— Animoca Brands (@animocabrands) December 26, 2024

In 2014, Yat Siu and David Kim established Animoca Brands Corporation. Initially, their main endeavor was creating mobile games. However, by 2018, they pivoted their focus towards blockchain gaming and non-fungible tokens, which positioned them as a significant player in the Web3 sphere.

Vulnerabilities on the Solana blockchain

It’s not the first instance where Solana blockchain has fallen prey to a scam. The unique structure of Solana leaves users susceptible to certain vulnerabilities. A recent incident, investigated by the U.S. Department of Justice, highlighted this problem. The DOJ accused two California residents, Gabriel Hay and Gavin Mayo, of orchestrating NFT rug pulls on Ethereum and Solana that resulted in losses worth over $22 million for buyers. These rug pulls involved promoting non-existent NFT projects such as Vault of Gems and Faceless, and subsequently absconding with investors’ funds. This case is the largest NFT fraud ever prosecuted by the DOJ. Additionally, it was also reported that Drake, a Canadian singer, had his account hacked to endorse Solana-based meme coin Anita.

Why is Solana vulnerable to scams?

Although Solana’s design prioritizes efficiency, it unintentionally increases its vulnerability to fraudulent activities when compared to other networks. Specifically, Solana’s token account system allows attackers to transfer ownership of assets using a misdirected command, making the funds extremely difficult, if not impossible, to retrieve.

Moreover, Solana’s single-step transaction confirmation contrasts with Ethereum’s multi-phase function authorization, potentially leading to immediate and irrevocable losses upon approval of a malicious transaction. Additionally, the platform’s ability to bundle multiple sub-transactions into a single approval increases the risk of undetected thefts.

Scammers cleverly utilize Solana’s Durable Nonce feature to delay malicious transactions, thereby dodging detection systems and catching unsuspecting users off guard. This, combined with users’ lack of understanding about the specific risks associated with Solana, makes it a popular choice for scams.

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2024-12-26 08:40