MicroStrategy’s X Account Hacked in ETH Token Phishing Scam, Over $440k Drained

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Key Takeaways

  • Clicking the link redirects users to a fake MicroStrategy webpage, where they’re prompted to connect a wallet and claim the fake MSTR airdrop.
  • As per blockchain analyst ZachXBT, losses from the scam have surpassed $440,000.

On Monday, February 26, MicroStrategy, a prominent business intelligence firm recognized for its substantial holdings in Bitcoin, found itself embroiled in a cybersecurity incident. 

The company’s official social media account, known as X, was compromised by hackers, who utilized it to propagate a deceptive scheme involving a fake Ethereum-based token airdrop. With a sizable audience of over 196,000 followers, the X account became a conduit for fraudulent activity.

The hackers, whose identities remain unknown, capitalized on MicroStrategy’s stature within the cryptocurrency realm, leveraging its reputation as the largest corporate holder of Bitcoin. They introduced a spurious Ethereum token named ‘MSTR,’ falsely purporting it to be backed by MicroStrategy’s extensive Bitcoin reserves. 

Despite the expeditious removal of the fraudulent content from MicroStrategy’s official X account, the damage had already been done. Victims who fell prey to the phishing links and connected their wallets reported losses exceeding $440,000, as confirmed by ZachXBT, an on-chain analyst. The financial ramifications of the scam underscore the pernicious nature of cybercrime within the cryptocurrency ecosystem.

This breach has ignited scrutiny within the cryptocurrency community regarding MicroStrategy’s security protocols. Questions have arisen regarding the absence of two-factor authentication (2FA) on the X account, raising concerns about the adequacy of the company’s safeguards against cyber threats.

The latest development comes amid MicroStrategy founder Michael Saylor reaffirming his commitment to holding the firm’s significant BTC reserves, currently surpassing 190,000 BTC valued at over $9.7 billion.

The MicroStrategy breach draws parallels to similar high-profile cyber attacks in the past. In September 2023, Ethereum co-founder Vitalik Buterin fell victim to hackers who exploited his social media account to promote a phishing site, resulting in substantial financial losses for unsuspecting individuals.

Additionally, in January 2024, hackers compromised the official X account of the US Securities and Exchange Commission (SEC), disseminating false information about the approval of spot Bitcoin exchange-traded funds (ETFs).

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Saniya Raahath
Saniya Raahath

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