Frax Finance Social Media Account Hijacked! Alleged Involvement Of Insiders Behind Hacking

Faction Finance CEO Sam Kazemian (photo: x @FlywheelDeFi)

JAKARTA - The Flax Finance crypto lending platform social media account on X ( formerly known as Twitter) was hacked on June 1. However, surprisingly, hackers did not access or change the existing password. Flax Finance CEO Sam Kazemian immediately asked his followers on X to contact X's customer service to restore control of the account.

Users report that X takes about 72 hours to handle complaints related to compromised accounts. This process involves filing a request for support with a connected email address and going back and forth processes involving sending additional information according to direction.

Although X suggests changing passwords during account compromise, Kazemian claims that passwords are not changed and asserts that there are no problems within the Frax Finance that could lead to this hack. Instead, he suspects the involvement of insiders working at X.

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

If anyone has a direct line to X account/customer service please DM me, @fraxfinance X account is complemented and appearances to be inside job or social engineering within X since no password reset or other issues within Fxx itself. Please stay safe and don't click any X links!

"The X Flax Finance account has been hacked and it appears this is insider work or social engineering inside X because there is no password reset or other issues within the Faction itself," Kazemian said.

More than 48 hours after the hack, neither Frax Finance, Kazemian, nor representatives X had yet to provide updates on the recovery of the account. As a result, the CEO's recommendation to avoid all web site links shared from compromised accounts remains in effect when this writing is made.

The response to Kazemian aid calls shows that Frax Finance has managed to get a "direct route" to X's customer support team.

It's Not Just The Crypto Protocol That Becomes A Hacking Victim

Hacking an X account is not only limited to crypto protocols. Recently, leading merchant social media accounts, rappers, and A-list celebrities also suffered the same fate as Flax Finance.

Hacked influencers and celebrities' X accounts are used to promote various cryptocurrencies, including Terra (LUNA2), Ordi (ORDI), and celebrity-inspired memecoins.

Many community members are surprised to see hackers not using this scheme as best they can. "He can choose a more convincing microcap to pump 10-20x, but instead chooses to promote ORDI and LUNA2 for a 10% increase," said crypto analyst Miles Deutscher.

Hacking social media accounts, especially on platforms like X, continues to be a serious threat to individuals and organizations. The Frax Finance case highlights the importance of strong cybersecurity and vigilance against potential social engineering and involvement of insiders.