The hackers used the compromised account to facilitate the sale of fake tokens, amassing over $500,000 in trading volume before being flagged as a scam. The attackers posted false claims about Solana-based tokens and an SEC lawsuit against Cardano. After the incident, ADA's price fell by more than 4%, but its monthly performance remained strong with a 168% increase.
Cardano co-founder Charles Hoskinson confirmed on Sunday that the Cardano Foundation's X account was hacked that day.
The foundation said the breach was limited to X and did not affect any other platforms or systems, but the hackers had already lost more than US$500,000 (AU$782,000) before it was reported as a scam. was running a fake token sale scheme to obtain a trading volume of . About the DEX screener.
Hoskinson criticized X's platform for not having better security features.
Given that CF accounts were hacked, it's a good time to revisit changes to X that dramatically improve security for all users https://t.co/oaThTPI5wi
We will implement it for free @elon musk. Just light a beacon
— Charles Hoskinson (@IOHK_Charles) December 8, 2024
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The attacker used the compromised account to post misleading information about the Cardano community. The first false announcement claimed the launch of a Solana-based token called ADASOL and was described as “Cardano reimagined for the speed and innovation of Solana.”
The scam thread consisted of 13 detailed posts linking to official resources such as the foundation's website and recent podcast episodes, lending credence to the scam.
After deleting the first post, the hacker published another false statement that generated over 250,000 views. In it, they claimed that the US Securities and Exchange Commission (SEC) had filed suit against the Cardano Foundation.
The post falsely claimed that the Foundation was suspending all support for ADA tokens to comply with regulatory requirements.
In light of this unexpected legal action, we have made the difficult decision to immediately suspend all support for the $ADA token to ensure compliance with regulatory requirements.
cardano foundation hacker
When community members questioned the legitimacy of the notification, the Cardano Foundation team leader admitted that the account had been compromised. The official Cardano Community X account also clarified and advised followers to ignore content from compromised handles.
ADA removed following incident
Following this news, ADA's price fell by more than 4% and is now at US$1.19 (AU$1.86). However, ADA's performance has been pretty strong on a month-to-month basis, jumping 168% in the past 30 days.
Source: CoinMarketCap
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Cardano’s Total Value Lock (TVL) is also gaining traction in decentralized finance (DeFi). As reported by Crypto News Australia, Cardano's TVL peaked at around US$800 million (AU$1.08B).
