Polychain Warns Users Against Engaging with CEO’s X Account Following Hack

Last updated: January 5, 2024 04:42 EST . 2 min read

Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.Source: AdobeStock / Tomasz BidermannDigital assets fund management company, Polychain Capital has urged users not to interact with the X (formerly Twitter) account of its CEO following a hack.

In a Jan 4 X post, the platform acknowledged the breach on the account of its CEO Carlson Wee asking users not to engage until further notice.

Important Notice: Olaf’s personal twitter (@zxocw) has been compromised. Please do not engage with this handle until further notice.

— Polychain (@polychain) January 4, 2024

The incident was detected when the CEO’s and founder’s account started promoting fake airdrops without a sign-off from management seeking to get community engagements.

A post of a “PCHAIN” token airdrop on Jan 4 was advertised as part of the New Year’s celebration of the company in addition to links disguised as relating to the firm.

“In celebration of the New Year, We have decided to start the $PCHAIN phase 1 distribution early! What are you waiting for? Get your share before it’s too late! Register below to participate.”

Consequently, the hacker continued with more pistols related to the subject matter with over 41,000 viewing the posts. However, it can be seen that the hacker’s posts on the account have been taken down but the platform has not given the official go-ahead on X to engage with the account at press time.

Polychain is a cryptocurrency venture capital firm based in the United States with investment in technology and about $2.6 billion in assets under management (AUM).

Over the years, blockchain phishing scams have gained notoriety as a way of tricking users into clicking malicious links from scam websites or authentic sources that have been compromised. If a user clicks or engages, they may be lured to deposit funds or engage with a scam network exposing them to more hacks.

A popular incident around the cryptocurrency industry occurred in September when the X account of Vitalik Buterin was compromised leading to hackers defrauding victims $691,000 after posting fake links for a free non-fungible token promotion.

Phishing scams hit $295 million in 2023

This month Cryptonews reported on Scam Sniffers’ findings into industry phishing scams over the past year. The blockchain security firm revealed that $295 million was stolen by wallet drainers from 324,000 users.

“Over the past year, phishing activities have steadily increased each month with phishing scammers employing more sophisticated tactics to evade security measures. Scam Sniffer has made findings on “Wallet Drainers” that warrant the industry’s full attention.”

Most phishing scams occurred in March as a result of fluctuations in USDC leading to bad actors creating fake websites and links impersonating the company.

🚨 Scam Sniffer’s 2023 Report is out! Nearly $300M stolen by phishing campaign targeting crypto wallets – affecting over 324K victims. 🕵️‍♂️

📈 Trends show no sign of slowing, as new drainers emerge to replace the old. Stay vigilant & informed:

— Scam Sniffer | Web3 Anti-Scam (@realScamSniffer) January 1, 2024

Inferno Drainer led the hack list with a total of $81 million worth of assets stolen from 134,000 users while MS and Angel Drainer were next with $59 million and 20 million worth of assets stolen from 63,000 and 30,000 users.

It should be noted that several blockchain security firms reported a reduction in the wider number of cryptocurrency scams from December 2022.