Robinhood Twitter Account Hacked, Actor Promotes Scam Token

Robinhood's Twitter account was hacked. (Photo; Doc. CoinsTelegram)

JAKARTA - Stock trading platform Robinhood, known for its user-friendly approach to stocks, fell victim to a crypto scam recently.

Not long ago, an unknown criminal managed to gain control of Robinhood's official Twitter account and used it to publish a now-deleted tweet advertising $RBH, the supposedly recently minted Robinhood token.

However, this company does not own the original cryptocurrency and has never minted the tokens themselves. Instead, investors can opt for this platform by purchasing NASDAQ-listed HOOD shares.

This signifies that although Robinhood is known as a platform that allows investors to buy crypto, it is actually a stock trading platform as well.

Criminals use Robinhood's verified social media to promote crypto scams that advertise counterfeit tokens. According to a blockchain security research tool, the offered token is a honeypot which means once purchased, the new owner will no longer be able to sell or transfer to another wallet.

Generally, this type of attack is carried out by bad actors posing as well-known people or platforms, making them easier to detect. However, as this scam was promoted on Robinhood's verified social media, more people fell for the bait.

The token is reportedly minted on the BSC network. Those RBH honeypot tokens cannot be sold or transferred to another wallet once purchased. The Binance security team immediately closed the wallet responsible for the damage. In a recent tweet, Binance CEO Changpeng Zhao warned the crypto community to remain cautious and use better judgment when purchasing tokens, even if they appear to be legitimate.

Looks like Robinhood account got hacked and was promoting a coin on BNB Chain. Always have critical thinking even is the account looks or is real. https://t.co/XSwHIVdEdw

— CZ 🔶 Binance (@cz_binance) January 25, 2023

It also reminds us of the importance of being careful in investing and always doing the research before putting money in a project or token. For this reason, users must be able to anticipate fake accounts that claim to sell unknown tokens or cryptocurrencies and always do research before investing.