Cardano Foundation's X Account Compromised Fake Token and SEC Lawsuit Announced

The Cardano Foundation's X account fell victim to a sophisticated hack earlier today, resulting in the spread of misinformation that rippled through crypto communities. The compromised account was used to announce the launch of a fictitious token, $ADASOL, allegedly integrating Cardano's technology with Solana’s speed. This announcement wasn't just a simple tweet but a detailed thread mimicking the Foundation's communication style, complete with links to legitimate resources to lend an air of authenticity.

This deceptive narrative painted a picture of innovation, claiming that $ADASOL was "Cardano, reimagined for Solana's speed and innovation." The scam was cunningly crafted, leading some within the crypto trading circles to engage with the token, which saw about $500,000 in trading volume on platforms like DexScreener before the deception was widely recognized.

However, the scam didn't stop there. After the initial thread was taken down, the hacker used the Cardano Foundation's account to spread another falsehood, this time about an SEC lawsuit against the organization. The fabricated notice claimed the Foundation had decided to "immediately cease all support towards the $ADA token to ensure compliance with regulatory requirements." This claim was especially poignant, given the ongoing regulatory scrutiny many cryptocurrencies face, potentially causing panic among investors and ADA holders.

The impact of these false announcements was considerable, with the hacked post garnering over 256,000 views on X alone before clarifications could be made. The replies were disabled on the post, preventing direct engagement and adding to the confusion. It was only through the vigilant efforts of community members and quick action by the Cardano team that the hoax was debunked.

A member of the Cardano Foundation confirmed the hack, stating, "Confirmed, we're on it," while the official Cardano Community account further warned followers to disregard any posts from the compromised account until the situation was under control.