Polychain Capital CEO’s Account Hacked, Promotes Fake Airdrop

Polychain Capital CEO’s Account Hacked, Promotes Fake Airdrop

Polychain Capital, a firm specializing in cryptocurrency investments, has confirmed that the X account of its founder and CEO, Olaf Carlson-Wee, has been hacked.

A security breach at cryptocurrency investment firm Polychain Capital was uncovered on Jan. 4, when the firm’s CEO’s account started promoting a fake airdrop for the firm’s native token, PCHAIN.

The hacker claimed the airdrop was part of Polychain’s New Year celebration, with the post including links that led to a phishing website.

Polychain soon discovered the breach and released a statement warning users against interacting with Carlson-Wee’s X account until further notice.

The account with more than 19,000 followers has been retrieved, and the offending post has been deleted. It is yet to be discovered how many people may have interacted with the post or lost their assets as a result.

The Carlson-Wee incident has reignited the debate on the security of the crypto community. In December, users of the Orbit Chain’s cross-chain bridge endured significant losses due to a hack that escalated the month’s total losses from such incidents to nearly $100 million.

This latest hack has raised questions about the security of various crypto-related platforms and the feasibility of blockchain technology as a whole.

The Orbit Bridge attacker, who struck at 8:52 pm UTC on Dec. 31, stole various cryptocurrencies, including Ethereum (ETH), USD Coin (USDC), Tether (USDT), and Wrapped Bitcoin (WBTC). The attacker managed to steal a total of $1.1 million worth of various cryptocurrencies.

Orbit Chain’s team has announced their plans to work with international crypto exchanges and law enforcement agencies to recover the stolen assets.

Phishing scams continue unabated

In 2023, crypto phishing scams were rampant, affecting more than 324,000 people and resulting in nearly $300 million in losses. Blockchain security platform Scam Sniffer released a report highlighting the prevalence of these scams.

The SlowMist security report for 2023 has revealed that there was a 34.2% decrease in security incidents that led to almost $2.5 billion in losses. This is compared to the previous year, 2022, where there were slightly over 300 incidents and losses of $3.8 billion.

According to the report, the decentralized finance (defi) sector was the most targeted, experiencing over 280 security incidents in 2019. This accounted for 60.7% of all incidents that year and caused $773 million in losses. Interestingly, this marked a substantial 62.7% decrease from 2022.

Ethereum was hit the hardest by scams, rug pulls, and breaches in 2018, with losses totaling $487 million. Polygon also fell victim to scams and hacks, with losses amounting to $123 million.

As more and more blockchain security firms release reports on crypto losses, the estimates continue to grow. PeckShield, CertiK, and Beosin have all released reports estimating the total losses due to scams, breaches, and exploits in 2023 at between $1.51 billion and $2 billion.

What’s more, the North Korea-linked hackers of Lazarus are responsible for 17% of these losses.

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