Hackers Exploit MicroStrategy’s X Account, Pocket $440k Through Phishing Scam

MicroStrategy, the world’s largest corporate holder of Bitcoin, fell victim to a social media hack on Friday, highlighting the escalating dangers of online scams targeting the cryptocurrency community.

Hackers gained unauthorized access to the company’s X account, a social media platform focused on the crypto industry, and used it to promote a fake Ethereum token named MSTR.

The scam promised low gas fees and claimed to be backed by MicroStrategy’s Bitcoin reserves, luring unsuspecting users into clicking a phishing link.

The Sham Token and Phishing Links

The deceptive operation resulted in losses exceeding $440,000, according to on-chain sleuth ZachXBT. Users who clicked the link and connected their wallets to claim the non-existent MSTR token were unknowingly drained of their cryptocurrency assets.

0xe7645b8672b28a17dd0d650a5bf89539c9aa28da

~$440K stolen from the compromise so far

— ZachXBT (@zachxbt) February 26, 2024

This incident serves as a stark reminder of the sophistication and prevalence of social media scams targeting the crypto space.

This attack wasn’t an isolated event. In recent months, similar hacks have compromised the X accounts of prominent figures like Ethereum co-founder Vitalik Buterin and the US Securities and Exchange Commission (SEC).

These incidents employed various methods, from sim swaps to exploiting a lack of two-factor authentication (2FA), to deceive unsuspecting individuals.

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The choice of promoting an Ethereum-based token further adds intrigue to the MicroStrategy hack. The company is well-known for its steadfast commitment to Bitcoin, holding a massive 193,000 BTC worth over $10 billion.

This raises questions about the hackers’ motives and potentially indicates a shift in targeting tactics within the crypto landscape.

Staying Vigilant:

This incident underscores the importance of exercising caution when engaging with social media content, particularly within the cryptocurrency sphere. Users should never click on unverified links, especially those promising free tokens or airdrops.

Additionally, enabling 2FA on all online accounts, including social media platforms, adds an extra layer of security against unauthorized access.

Read Also: MicroStrategy Doubles Down on Bitcoin, Adding Another 3,000 BTC to Its Holdings