Frax Finance founder says 'serial scammer' hacked X account

Frax Finance founder says ‘serial scammer’ hacked X account

The founder of decentralized finance protocol Frax Finance says the team is “reasonably sure” about the identity of the criminal that hacked the project’s X account.

Frax Finance founder Sam Kazemian alleges that an inside job at X caused the hack of the project’s account, resulting in the protocol behind the FRAX USD-pegged decentralized stablecoin losing access in early June.

Frax Finance founder says 'serial scammer' hacked X account - 1 — Frax Finance founder’s statement on Telegram | Source: Telegram

In a Telegram post on Jun. 3, the Frax Finance head said the team is “reasonably sure” it has the identity of the criminal that perpetrated the X account, blaming a “serial scammer” that ZachXBT, a blockchain sleuth, is “aware of.”

“We will try our best to bring that person to justice. And again to be clear to anyone reading this: this wasn’t a security issue and no one on the team was phished or anything. This was an inside job.”

Sam Kazemian

The hack, which occurred in early June, seemed to involve either an inside job or social engineering within X, rather than a security flaw or phishing attack targeting the Frax team, Kazemian said on his X account shortly after the incident. Currently, the X account of Frax Finance remains active, but no new posts are visible.

If anyone has a direct line to X account/customer service please DM me, @fraxfinance X account is compromised and appears to be inside job or social engineering within X since no password reset or other issues within Frax itself. Please stay safe and don't click any X links!
— Sam Kazemian (¤, ¤) (@samkazemian) May 31, 2024

This incident adds to a growing list of crypto projects attributing breaches to insider actions at X. Thus far, neither X nor its chief executive Elon Musk has commented on the situation.

In a similar event in late May, a crypto trader known as GCR reported that his X account had been compromised through bribery, leading to an ORDI pump-and-dump scheme. Blockchain sleuth ZachXBT later suggested that developers behind the Solana-based memecoin CAT might be involved in that hack. It remains unclear whether the same group is responsible for the attack on Frax Finance.