The Twitter account of Ethereum co-founder, Vitalik Buterin, was compromised on Saturday, leading to a significant loss for his followers. The hacker posted a malicious link about the launch of new commemorative NFTs from software provider Consensys, resulting in unsuspecting users losing almost $700,000 collectively. The most valuable NFT stolen so far is CryptoPunk #3983, worth 153.62 ETH (around $250,000), as reported by blockchain investigator ZachXBT on Sunday.
Dmitry Buterin, Vitalik's father, confirmed the breach on Sunday and urged followers to disregard the malicious post. However, the damage had been done with Ethereum developer Bok Khoo (known as Bokky Poobah on Twitter) claiming losses in his CryptoPunk NFT collection.
The method used by the hackers remains unclear. Some speculators suggest that Buterin's account may have been compromised through a SIM swap attack - a technique involving taking control of someone's phone number to bypass two-factor security measures on websites like crypto exchanges or social media platforms.
This incident adds to a growing list of cryptocurrency-related security breaches. In August, the official website of the Terra blockchain was compromised by hackers who posted a series of malicious links. A report by Immunefi highlighted that Web3 platforms have lost over $1 billion in hacks and rug pulls in 2023 so far, with crypto investors losing a total of $54 million in a single month.
Binance CEO Changpeng Zhao has criticized Twitter's security measures compared to traditional financial accounts and platforms. He suggested that the platform needs more features such as two-factor authentication and distinct login IDs from handle or email addresses. Currently, Twitter supports two-factor authentication but only for paid users.
The recent hack has raised concerns about the security measures implemented by high-profile individuals in the crypto space. As the crypto industry continues to grow, it becomes increasingly important for users to be wary of clicking on random links, especially those shared on social media platforms.
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