Frax Finance X Hacked, CEO Suspects Inside Job at Musk’s Office

A recent security breach saw a hacker reportedly gain control over the social media account of the crypto lending platform Frax Finance, without needing to alter or manipulate existing passwords. This incident has raised concerns and questions about how such a breach could occur if passwords were untouched. The hacking incident occurred on June 1, and it immediately prompted a fervent response from Frax Finance’s CEO, Sam Kazemian.

Kazemian took to the same social media platform to seek assistance from his followers, urging them to help him reach the platform’s customer service for quicker recovery of their compromised account. According to reports from users, it typically takes the social media platform around 72 hours to look into complaints concerning compromised accounts. The complaint resolution process generally involves raising a support request through a linked email address and often requires back-and-forth communication to provide supplementary information.

Despite the platform’s standard recommendation to change passwords in the event of account compromises, Kazemian claimed that there had been no tampering with their passwords. He strongly believed that the issue did not originate from within Frax Finance. Rather, he suspected that the breach could be attributed to an insider at the social media company. Kazemian suggested that the attack might be the result of either insider cooperation or sophisticated social engineering tactics within the platform.

“Kazemian stated that the Frax Finance account compromise appeared to be an inside job or a result of social engineering from within the social media platform since no password reset or other internal issues within Frax itself were detected,” he remarked. The lack of updates on the situation continued for over 48 hours following the hack, leaving users unsure about the status of the recovery. Kazemian urged users to refrain from clicking any links shared by the compromised account to avoid potential scams.

The call for help seemed to yield some results, with responses from the community indicating that Frax Finance may have managed to establish a “direct line” to the social media platform’s customer support team. This connection could expedite the process of regaining control over the compromised account.

It’s important to note that such security breaches are not isolated to crypto protocols alone. Various social media accounts of prominent traders, rappers, and A-list celebrities have suffered similar fates. Hackers have leveraged the sizeable followings of these accounts to promote various cryptocurrencies like Luna2, ORDI, and even meme-inspired tokens modeled after celebrities.

The crypto community was shocked by not only the frequency of these hacks but also by the seemingly poor execution from the hackers. Many opined that the hackers missed ample opportunities for greater financial gain through more plausible investment shills. For example, renowned crypto analyst Miles Deutscher commented that the cybercriminal could have chosen any believable micro-cap crypto to promote and significantly increase its value, yet settled for promoting ORDI and Luna2, which resulted in only a minimal price increase.

Thus, while the incident with Frax Finance highlights a growing concern about security on social media, it also underscores the need for both enhanced internal security measures and user awareness in preventing such breaches from causing widespread harm. Kazemian and his team continue to await further communication from the social media company, hoping for a resolution, while the crypto community braces itself for potential future incidents of a similar nature.