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Animoca Brands has recently alerted the cryptocurrency community about a fraudulent ANIMOCA token following a security breach involving its co-founder, Yat Siu.
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The significant rise in the fake token’s value, which peaked at 500%, underscores the urgent need for better security measures in the crypto space.
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In a statement, Yat Siu underscored the shocking bypass of two-factor authentication, pledging to raise awareness about security flaws on the platform.
This article discusses the recent hacking incident of Animoca Brands’ co-founder’s account, which promoted a fraudulent ANIMOCA token, raising serious security concerns.
Fake ANIMOCA Token Spikes 500% in Just 5 Minutes
In a surreal turn of events, Yat Siu’s official X account was compromised, leading to a misleading announcement regarding the launch of an ANIMOCA token purportedly from Animoca Brands. This incident serves as a stark reminder of the vulnerabilities present in digital asset management.
Investigation from various analysts indicated that the fraudster created the token on the pump.fun platform, which subsequently facilitated a rapid increase in the token’s price, soaring 500% within five minutes. However, this surge was short-lived as the value sharply declined after the hacker’s post was deleted.
As the situation escalated, Siu utilized a secondary account to inform the public of the breach. He confirmed that the hacker had effectively bypassed the typical two-factor authentication (2FA) security measures, leading to this incident. Following this breach, Siu has committed to addressing these security vulnerabilities and sharing insights on improving protection against similar attacks.
“Unfortunately Yat Siu’s social media account has been compromised. There is no official token or NFT launch from Animoca Brands. The token launch on Solana as claimed in a post was made by the hacker. Please DO NOT engage with the account and stay vigilant,” Animoca Brands cautioned the community in their official communication.
Animoca Brands remains a significant player in the Web3 investment landscape, boasting a portfolio that encompasses over 540 investments, with notable entities including Yuga Labs, Axie Infinity, and OpenSea. Their influence and visibility make incidents like this increasingly concerning and emphasize the importance of digital security.
Additional recent occurrences reflect growing risks in the crypto industry, such as scammers stealing $100,000 through a fake CLAUDE token after compromising Anthropic’s X account. A similar incident involved the exploitation of Drake’s account to promote a phony meme coin named Anita.
Research conducted by Cyvers highlights that vulnerabilities associated with access control continue to be the primary avenues for significant monetary losses in the cryptocurrency sphere. Their findings revealed that access control weaknesses resulted in over $1.9 billion in damages in 2024 alone, indicating a critical need for enhanced security strategies and awareness.
Conclusion
The alarming rise of the fake ANIMOCA token incident reinforces the pressing necessity for robust security measures within the cryptocurrency ecosystem. Investors are urged to remain vigilant and skeptical of unusual activity, especially surrounding token launches and announcements. As digital threats evolve, so must the strategies to combat them, and this incident serves as a call to action for industry stakeholders to prioritize security in all facets of their operations.
