Hackers Hijack Nasdaq’s X Account to Promote Fake Memecoin STONKS

Nasdaq’s Social Media Account Hijacked to Promote Fake Memecoin

A recent cyberattack on Nasdaq’s official X (formerly Twitter) account has resulted in the promotion of a fake cryptocurrency, STONKS, which briefly soared in value before crashing to zero.

The attackers used Nasdaq’s high-profile presence to endorse the token, creating the illusion of credibility and quickly attracting unsuspecting investors.

Within hours, the market value of STONKS soared to a staggering $123 million, only to collapse back to zero shortly after.

Hackers Create a Believable Scam to Boost Fake Coin’s Value

The hackers didn’t just take over the Nasdaq account but linked it to a fraudulent profile, @nasdaqmeme, which was presented as an official affiliate.

The fake account has since been removed from the list and is now suspended.

The fake account, @nasdaqmeme, sported a gold verification badge to enhance its credibility, before promoting the STONKS memecoin.

Within hours of a retweet from Nasdaq's official account, which has over 134,000 followers, the token’s market cap skyrocketed to $80 million, and trading volume surged to $185 million.

However, the euphoria was short-lived.

The value of STONKS plummeted to near zero, leaving investors with substantial losses.

Blockchain data suggests that the attackers may have walked away with at least $4 million in stolen funds after they "rug-pulled" the coin.

A Copycat Coin With a Deceptive Twist

The STONKS coin in question was a copycat of an already existing Solana-based token, STNK, which was launched in 2021.

The use of the STONKS name, made famous by the 2017 meme and Gamestop short squeeze, coupled with the hijacked Nasdaq account, created a false sense of legitimacy.

The legitimate STNK team quickly distanced themselves from the scam, warning the community and even threatening legal action against the fraudulent project.

Social Media Hacks: The Rising Trend of Crypto Scams

Hackers have increasingly targeted the social media accounts of influential figures and organisations, using their massive followings to promote fake coins.

Blockchain investigator ZachXBT uncovered a similar scheme late last year, where scammers compromised 15 X accounts to push counterfeit cryptocurrencies, reportedly making off with at least $500,000.

These types of scams have gained traction in the crypto world due to their effectiveness in generating quick, often uncontrollable hype.

By exploiting the large audiences of companies or celebrities, the attackers can manipulate market movements before disappearing with stolen funds.

Alarming Ease of Securing Verified Status

One particularly disturbing aspect of this hack is how easily the fraudsters secured a gold verified badge for the fraudulent account, @nasdaqmeme.

The ease with which this was done raises serious questions about the security of social media platforms and the process behind granting verification.

Crypto trader CRG, who witnessed the scam unfold, remarked that it was the “best grift” he had ever seen in a while.

This comment highlights the audacity and sophistication of the attack, with the scammers taking advantage of the trust built up by Nasdaq’s account.

The Continuing Threat of Fake Memecoins

Memecoins like STONKS are often designed to exploit viral trends and internet memes.

While they can lead to quick profits for some, they also carry significant risks, as demonstrated by this incident.

Investors, lured by the rapid price spikes, are left vulnerable to sudden crashes, with no recourse to recover their losses.

As more of these scams continue to emerge, the vulnerability of social media platforms to these types of attacks remains a major concern.

Despite efforts to improve security, misinformation continues to spread rapidly, making it increasingly difficult for investors to discern legitimate projects from fraudulent ones.

The Nasdaq hack, while high-profile, is part of a much larger wave of hacks targeting both institutional and celebrity accounts, making the crypto space an even riskier environment for unsuspecting traders.

Just recently, crypto influencers have been spreading fake US Treasury XRP Wallet on X.

The alleged wallet, reportedly linked to institutions such as JPMorgan and Bank of America, was eventually traced to a location in the Philippines.

In another controversy, Cuba announced the launch of an official memecoin on X, only to rugpull it after a pump.

The announcement posts were eventually deleted, but Cuba claimed on Facebook that their X account had been hacked.