Cardano Foundation X account under attack, hackers spread misinformation about SEC lawsuit

ADA dropped 4% as soon as the incident surfaced.

Key Takeaways

• The Cardano Foundation tweeted that they had been served with a lawsuit by the SEC, which was soon identified as a false claim by hackers.
• Hackers also posted about a fake Cardano token on Solana.

Cardano Foundation’s official X social media account has been under attack, with hackers posting false information about a purported SEC lawsuit against the organization and promoting a fraudulent token.

The hackers first claimed that Cardano was releasing a new token on the Solana blockchain, which was soon discovered to be a scam token. At the time of reporting, the post that advertised this token had been deleted.

Following this, the compromised account shared an unverified statement claiming the US SEC had launched a lawsuit against the organization. As a result of this legal action, they have decided to cease all support for the ADA token to ensure compliance with regulatory requirements.

Users are advised to be cautious and not to click on any links posted by the compromised account.

These false claims sparked uncertainty in the Cardano community, affecting ADA’s market performance. The token’s price dropped 4% to $1.18 amid the incident, according to CoinGecko data.

The account breach occurred against a backdrop of ongoing scams targeting Cardano users, including fake ADA reward programs that have caused losses for token holders.