SBI VC Trade acquired the assets and accounts of DMM Bitcoin following a hack that cost the exchange $320 million earlier in the year. The cybercrime group TraderTraitor, which has ties to North Korea, is believed to be responsible. Animoca Brands, a leader in blockchain-based gaming, also faced a crisis when the social media accounts of cofounder Yat Siu were compromised and used to promote phony tokens.
Blockchain gaming giant Animoca Brands has confirmed a cyberattack on the social media account of its co-founder and chair, Yat Siu, marking yet another instance in a growing wave of attacks targeting cryptocurrency-focused accounts on X.
Animoca Brands released a statement on Dec. 26 via X revealing that the breach had occurred: “Unfortunately, [Siu’s] social media accounts have been compromised.” Hacker claimed to have launched the token on Solana, as stated in a blog post. The post promoted a fake token called Animoca Brands MOCA and falsely associated it with the firm’s Mocaverse NFT Collection.
This fake asset was created on Pump.fun – a meme coin platform based in Solana. The now deleted post lured unwary followers into interacting with it.
ZachXBT, a renowned blockchain researcher who has been involved in a number of hacks similar to this one, took to X and elaborated on the incident. He suggested that Siu was likely the victim of a phishing attack sent by the malicious actor behind a series. This threat actor has reportedly used social engineering techniques to compromise at least 15 cryptocurrency-focused accounts on X in the past month, amassing over $500,000 from unsuspecting victims.
ZachXBT pointed out that counterfeit tokens associated with other recent breaches were launched by the same addresses used for the fake MOCA token. The scams are particularly successful because they use compromised accounts as a way to give credibility to the fraudulent schemes.
The attackers use a common technique to impersonate the X Support team and send fake notices of copyright infringement. The notices are designed to create an urgency that will lead victims to click a link leading them into a phishing site where they can reset their passwords or two-factor authentication credentials. The attacker can access the account of the victim once this information has been compromised.
After being sent from Siu’s compromised account, the fake MOCA token saw a short surge in price. Birdeye’s blockchain analytics shows that the fake MOCA token reached a peak market cap of $36,700 just after this article was published. The token value dropped to $7700 in seconds and continued to fall to $6200.
The tokens quickly lost their value, and the trading activity ceased. The same hacker has used this pattern in other scams, with the main objective of siphoning money through hype and price inflation.
Crypto X accounts are the target of a series of attacks
Siu’s is the most recent in a string of attacks which began late in November. On Nov. 26th, the first incident was reported. It targeted RuneMine’s X-Account. The attacks continued, with the latest attack on Kick’s crypto streaming video trading platform occurring Dec. 24, 2018.
The recent breaches on X have raised concerns over the security of cryptocurrency accounts that are high profile, especially as the platform is a vital space for announcements and interactions related to crypto.
This incident highlights the threat of phishing in the crypto-space, especially on platforms such as X. Trust and quick communication are key. Siu was a well-known figure in the blockchain gaming industry and his affiliation with Animoca Brands attracted attackers who were looking to take advantage of his fans’ trust.
Animoca Brands warns its users to be vigilant and alert against phishing schemes. The company stressed the importance of using official channels to verify announcements and implementing robust security measures.
Experts have highlighted the need to adopt stronger security measures as phishing techniques become more sophisticated. The recommendations include using hardware-based 2-factor authentication, being cautious of unsolicited emails and not clicking unfamiliar links.
The incident highlights that platforms such as X need to enhance account security for users, particularly those in the crypto industry who are high profile. Improved verification processes and better detection could reduce the risk of these attacks.
Hacking Yat Siu’s account is a reminder that the crypto space has many vulnerabilities. The lesson for users is to always check the authenticity of any announcement and make sure your account has the best security.
The wider crypto community must be on alert, as malignant actors target prominent figures and organisations. The crypto ecosystem can only be protected by collective vigilance, and taking proactive measures to protect itself.
SBI VC to absorb DMM bitcoin following $320 million hack
In other cybersecurity news, Japanese cryptocurrency-focused financial firm SBI VC Trade has officially announced its acquisition of the assets and customer accounts of hacked crypto exchange DMM Bitcoin. This transition is set to take place on March 8, 2020. It follows the devastating cyberattack that caused DMM Bitcoin’s closure earlier in this year.
SBI VC Trade announced in a statement dated December 25 that it had agreed to assume all DMM Bitcoin customer assets and accounts. SBI VC Trade assured DMM clients that no account creation process would be required, since SBI automatically created accounts for users transitioning from DMM Bitcoin.
On May 30, 2024 DMM Bitcoin announced a breach of security in which hackers exploited weaknesses in the wallet infrastructure. This breach led to the theft of 4500 Bitcoins, which were worth $320 million.
DMM Bitcoin is now in financial crisis after the thieves moved stolen funds quickly. Despite promising to compensate affected customers, DMM Bitcoin decided to close its operation and transfer all accounts to SBI VC Trade.
The attack was publicly attributed to TraderTraitor on Dec. 23 by US and Japanese officials. TraderTraitor is a cybercrime organization with ties to North Korea. The FBI, Japan’s National Police Agency and the Department of Defense Cyber Crime Center revealed all the details of this heist. It lasted months and used advanced social engineering techniques.
According to FBI reports, TraderTraitor started the operation targeting an Ginco employee, a Japanese crypto-wallet firm that is responsible for managing DMM Bitcoin wallet system. The attackers posed as recruiters on LinkedIn and approached Ginco’s employee to administer a pre-employment exam that appeared legitimate. The test contained a malicious code that was unwittingly posted to the employee’s GitHub page. This allowed the attackers exploit this vulnerability.
The group used their Ginco communications access months later to pretend to be the employee who was compromised. TraderTraitor used this stolen identity to manipulate a DMM Bitcoin transaction request, allowing them siphon the huge Bitcoin haul.
DMM Bitcoin hack is the biggest crypto exchange hack of 2024. It highlights persistent vulnerabilities in centralized platforms. Hacken, a blockchain security company, reported losses of $694,000,000 in 2024. This is more than twice the amount from 2023.
The DMM Bitcoin Hack and the $235 Million breach at Indian crypto exchange WazirX are notable incidents of this year. This sharp increase in losses is raising alarms over the need for decentralized and more robust solutions.
SBI VC Trade and Recovery
SBI VC Trade, which has stepped in to take over DMM Bitcoin accounts, is positioning itself in the aftermath of this crisis as a stabilizing factor. SBI wants to minimize disruption and restore trust by ensuring that DMM customers have a smooth transition.
SBI’s announcement reaffirmed its commitment to operational and customer security. Automatic account creation is designed to ease the transition of users who are still wary about the dangers associated with centralized crypto services.
The DMM Bitcoin hack serves as an important reminder that enhanced cybersecurity protocols are needed in the crypto sector. The experts point out several important takeaways.
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Social Engineering Vulnerabilities The attack highlights the dangers associated with social engineering techniques, which are based on human vulnerability rather than technical flaws.
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Decentralized alternatives: A growing number of high profile hacks have intensified the calls for decentralized platforms that eliminate single points failure.
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Collaboration Across Borders – The FBI, DC3 and Japanese authorities have worked together to combat cybercrime.
The transition from DMM Bitcoin to SBI VC Trade is a new beginning for former DMM Bitcoin customers. The hack’s broader impact will continue to resonate in the crypto world for many years. The pressure on centralized exchanges to improve security has never been higher.
The SBI VC Trade takeover DMM Bitcoin marks a crucial step towards restoring confidence and stability to the Japanese cryptocurrency market. The events that led to this moment serve as a reminder about the threats the crypto sector faces.
