With Solana meme coin scams on the rise, Animoca Brands issued a public notice about co-founder Yat Siu’s X account being hacked.
The official statement explains that recent allegations regarding the launch of the $ANIMOCA token or non-fungible tokens on the Solana blockchain, attributed to Animoca Brands, were the result of malicious activity by a hacker. Kenta, a cryptocurrency gaming operator, conducted the investigation first.
The Hong Kong-based gaming software company said that so far, there has been no official token or NFT launch associated with Animoca Brands and urged users not to do business with the hacked account. Animoca Brands has promised more updates once the account is restored.
Yat Siu and David Kim founded Animoca Brands Corporation in 2014. The company originally focused on developing mobile games but in 2018 shifted its focus to blockchain games and NFTs, becoming a major player in the Web3 space.
Solana blockchain vulnerabilities
This is not the first time the Solana blockchain has been used to carry out a scam. Solana’s infrastructure makes users vulnerable to specific vulnerabilities. A recent case brought by the US Department of Justice shed light on this issue, with the DOJ charging two California men, Gabriel Hay and Gavin Mayo, with running NFT withdrawals on Ethereum and Solana that cost buyers more than $22 million. These rug pulls included promoting fake NFT projects like Vault of Gems and Faceless and absconding with investors’ money. This case is the largest NFT scam the Department of Justice has ever prosecuted. Furthermore, Canadian singer Drake also had his account hacked for promoting Solana-based coin Anita.
Why is Solana vulnerable to scams??
Although Solana’s architecture may be designed for efficiency, it presents a number of risks that make it more vulnerable to fraud than other networks. The token account structure used by Solana allows attackers to reset asset ownership using specific commands, leaving the funds virtually unrecoverable.
Also, Solana’s approval of a one-step transaction – versus allowing multi-stage contract functions in Ethereum – can lead to immediate and irreversible losses once a malicious transaction is allowed. The platform’s ability to aggregate multiple sub-transactions into a single approval also exacerbates the risk of unseen thefts.
Fraudsters are also taking advantage of Solana Nons Mateen The ability to postpone the implementation of fraudulent operations, evade alerts and surprise victims. This, combined with users’ ignorance of Solana’s operational risks, leads to it being a prime target for scams.
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2024-12-26 05:38:48
