The founder of Frax Finance, Sam Kazemian, claims an insider hacked the project’s X account in early June, resulting in a loss of access to the protocol behind the FRAX USD-pegged decentralized stablecoin.
In a Telegram post on June 3, Kazemian identified a “serial scammer” as the culprit, corroborated by blockchain sleuth ZachXBT. He emphasized that the breach was not due to a security flaw or phishing attack but likely an inside job or social engineering within X.
This incident mirrors a trend of crypto projects facing breaches attributed to insider actions at X. Notably, in late May, a similar attack on a crypto trader’s X account led to a pump-and-dump scheme.
With its X account still compromised, Frax Finance highlights the need for stronger internal security measures. The growing frequency of such breaches emphasizes the strategic importance of robust cybersecurity in the crypto industry.
