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MicroStrategy's X Account Compromise Leads to $440k Hack

The Twitter account of MicroStrategy shared a phishing link purporting to offer an airdrop for an Ethereum token called $MSTR, purportedly backed by the company's reserves.

Tue, 27 Feb 2024, 11:34 am UTC

MicroStrategy, renowned as the most significant corporate holder of Bitcoin, fell victim to a substantial phishing attack on its Twitter account.

According to reports circulating in the community, investors were lured into a trap, resulting in losses estimated at around half a million dollars.

Breach on MicroStrategy's Twitter Handle

Unauthorized individuals gained access to the MicroStrategy account and published a phishing airdrop link, posing a potential threat to users' financial security. The first to report this breach was the Twitter handle Spreek.

Allegedly, a tweet emerged from MicroStrategy's official account, announcing the launch of an Ethereum token labeled $MSTR. The tweet claimed that the company's extensive Bitcoin reserves would back this token.

As cybersecurity analyst ZachXBT highlighted, the illicit post has already led to a substantial loss of $440,000.

According to The Block, the phishing link duped users into divulging sensitive information or transferring cryptocurrency to the attackers under the pretense of participating in a fraudulent airdrop campaign. MicroStrategy has yet to issue an official statement addressing the breach.

Persistent Threats to Official Twitter Handles

The hacking of official Twitter handles remains a persistent threat, particularly within the cryptocurrency community. Twitter continues to serve as the primary platform for engaging with the crypto community. While hackers have traditionally targeted the accounts of cryptocurrency firms, recent incidents have seen them infiltrating the profiles of prominent regulatory agencies and corporate entities.

Last month, preceding the highly anticipated approval of the spot Bitcoin ETF, a tweet surfaced from the SEC's official handle, erroneously declaring the approval of the ETFs. Investigations revealed that the SEC account lacked two-factor authentication during the breach.

According to Coin Gape, the breach stemmed from an unidentified party gaining control over a phone number linked to the SEC account via a third-party service, according to statements from the Safety Team. The agency affirmed its commitment to collaborating with law enforcement authorities in investigating the breach.

MicroStrategy's recent ordeal underscores the pressing need for enhanced security measures across all communication channels utilized by major players. As threats persist, robust security protocols are imperative to safeguard against future incidents of this nature.

Photo: Microsoft Bing

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