Unsuspecting investors have lost over $440,000 to a recent security breach involving the X (formerly Twitter) of popular Bitcoin company MicroStrategy.
The weekend was one to forget for some crypto investors, as they lost hundreds of thousands of dollars to bad actors. MicroStrategy X account was evidently hacked and used to post a link to a malicious website.
In the now-deleted post, the hackers claimed that MicroStrategy had launched $MSTR, a token on the Ethereum blockchain. Additionally, they claimed that MicroStrategy’s Bitcoin reserves backed the token, and users could claim tokens for free.
there was a second best after all
(hacked acc if not obvious lol) pic.twitter.com/cdLqbqiiCO
— Spreek (@spreekaway) February 26, 2024
However, when users click through the link and connect their crypto wallet to the phishing website, they unknowingly grant a malicious smart contract the ability to siphon their crypto assets.
According to blockchain sleuth ZachXBT, the bad actors received over $440,000 from their scheme. At the same time, they have transferred a significant portion of the loot to different addresses and now hold a balance of $200,000 at press time.
Meanwhile, it appears that MicroStrategy has regained access to the hacked X account at the time of writing. The malicious posts have since been deleted, although the company has yet to reveal the details of the hack.
Ironic Scam Post Highlights Reason for Caution
As some in the X crypto community were keen to point out, the scam strategy used by the hackers on MicroStrategy was ironic and relatively easy for experienced investors to flag. Aside from using a widely-repeated approach, tying MicroStrategy to an Ethereum-based project evidently raises the brows.
MicroStrategy CEO Michael Saylor has repeatedly pledged his unwavering commitment to Bitcoin (BTC) and is famously noted for saying, “There is no second best [to Bitcoin].” The company has devoted 100% of its crypto endeavors to Bitcoin, holds billions of dollars worth of the cryptocurrency, and has not given any idea so far that it would diversify.
Investors must remain cautious of phishing scams, especially with the cryptocurrency market being in a seemingly bullish phase. Bad actors will intensify their efforts, and only careful research can protect investors from losing their money.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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