Ethereum (ETH) co-founder Vitalik Buterin has reportedly fallen victim to a security breach on his X (formerly Twitter) account.
In a tweet that has since been deleted, the compromised account falsely announced that Consensys would be releasing a commemorative NFT to mark the introduction of the Proto-Danksharding feature on the Ethereum platform.
The individual responsible for the breach used Buterin’s account to distribute a malicious link, luring unsuspecting users with the promise of a free NFT. However, those who clicked on the link soon found their wallets drained of their funds.
On September 9, Dmitry Buterin, Vitalik’s father, publicly acknowledged the hack on X and informed the community that Vitalik was diligently working to regain control of his account.
“Please disregard the previous post; it appears that Vitalik’s account has been compromised. He is actively working to regain access,” Vitalik’s father stated in his tweet.
This fraudulent activity has resulted in substantial financial losses for those who unwittingly fell for the deceptive link.
Blockchain investigator ZachXBT reported that victims collectively lost over $691,000 as a result of clicking on the fraudulent link. Notably, the most valuable NFT stolen was CryptoPunk #3983, valued at approximately $250,543.
Numerous members of the crypto community also shared their unfortunate experiences of losing valuable NFTs due to the scam.
One user, Satoshi 767, raised concerns about Buterin’s security measures and argued that he should take responsibility for the incident.
“I hate to be the one to say this, but Vitalik should take responsibility for his poor op-sec and compensate those who have suffered,” he asserted, suggesting that Buterin’s oversight may have contributed to the attack.
“The only scenario in which Vitalik can be absolved of negligence is if someone within X compromised the account internally, or if he was physically coerced by a criminal who threatened violence. However, I highly doubt that this is the case. Most likely, this was a SIM swap attack.”
Nonetheless, ZachXBT countered these claims by emphasizing that Buterin’s high profile makes him a prime target for various hacking attempts. He stressed that it is premature to conclude whether a SIM swap attack occurred and suggested the possibility of an insider or other forms of manipulation.
Hacks and Rug Pulls Contribute to $1.2 Billion in Losses in 2023
In the current year, Web3 platforms have suffered staggering losses exceeding $1.2 billion due to hacks and rug pulls, as reported by Web3 bug bounty platform Immunefi.
The report highlights a total of 211 separate incidents that contributed to this substantial sum, with the month of August alone accounting for $23.4 million in losses.
The upsurge in losses during August was primarily associated with projects hosted on the recently launched Ethereum Layer 2 Base network.
The report further notes that Ethereum faced the highest number of attacks, with five distinct incidents affecting protocols built on the network.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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