Cardano Foundation’s X Account Hacked, Falsely Announces ADA Support Cessation

Cardano holders received a false warning on Sunday, stating that ADA trading would be halted on all platforms as of Monday, December 9. However, the announcement was later revealed to be a result of the Cardano Foundation’s X account being hacked.

Cardano CEO Charles Hoskinson commented on the incident, saying,

Looks like the [Cardano Foundation] account got hacked. Try harder hackers.

The hacker’s message claimed that the Cardano Foundation had been served with a lawsuit by the U.S. Securities and Exchange Commission (SEC) and would cease all support for ADA, effective immediately. The message also stated that all ADA tokens would be burned. However, the allegations were false, and the lawsuit was non-existent.

Background on Cardano

Cardano, founded by Charles Hoskinson in 2017, operates on a proof-of-stake consensus mechanism and is known for its emphasis on scalability, sustainability, and security. Cardano is widely regarded as a “third-generation” blockchain designed to overcome limitations in earlier networks like Bitcoin and Ethereum.

Regulatory Scrutiny in the Crypto Industry

The fake lawsuit came as Cardano’s token price saw a decline, with community members who were duped seeing the news as just another legal blow to the cryptocurrency industry, which has faced heightened regulatory scrutiny throughout 2024. The SEC has continued its enforcement efforts against crypto-related schemes, targeting fraudulent activities and unregistered offerings.

Some notable cases include:

  • NovaTech Ltd. ($650 million fraud): The SEC charged NovaTech for running a multi-level marketing and crypto investment fraud, impacting over 200,000 investors globally.
  • CryptoFX ($300 million Ponzi scheme): Seventeen individuals were charged for their roles in a fraudulent scheme targeting the Latino community.
  • Maverick Protocol: The SEC alleged that this decentralized finance (DeFi) platform offered unregistered securities.
  • Gemini Earn Program: The SEC sued Gemini for its Earn program, claiming the product was an unregistered securities offering.

SEC’s Scrutiny of Cardano

The SEC has scrutinized Cardano in the past. In 2023, the agency included ADA in its lawsuits against Binance and Kraken, alleging that the token functioned as an unregistered security under U.S. securities laws.

ADA still ranks among the top cryptocurrencies by market capitalization, with a market cap of over $42.7 billion.

X Security Concerns

Since Elon Musk’s acquisition of X (formerly Twitter), there has been growing concern about an increase in security breaches. High-profile incidents include the compromise of the SEC’s official X account earlier this year.

Observers have raised alarms over the platform’s ability to protect user data and maintain account security, blaming Musk’s significant staff cuts, including those in the information security team.

As a cryptocurrency enthusiast, it’s essential to stay informed about the latest developments in the industry. For more news and updates, visit Global Crypto News.

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