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.

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.

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.