Coingecko, a prominent crypto data aggregator, became the latest victim of a security breach on its X (formerly Twitter) account. Hackers hijacked the account to promote a fictitious token launch and airdrop. This incident occurred shortly after a similar hack of the U.S. Securities and Exchange Commission’s (SEC) X account.
On January 10, Coingecko addressed the hack through an X post, urging users to avoid engaging with or clicking on any suspicious links. The company announced plans to conduct an investigation and strengthen the security of its X accounts.
The fraudulent tweet, now deleted, misleadingly announced the introduction of a token named GCKO and enticed users to click a link to claim token airdrops, supposedly to celebrate the token’s launch. Unfortunately, several users reported losses after interacting with the scam link, raising questions about Coingecko’s implementation of two-factor authentication (2FA), which might have thwarted the hack.
This cyberattack follows a recent breach involving the SEC. As reported, the SEC’s X account falsely announced the approval of spot Bitcoin ETF applications, leading to a significant, albeit temporary, spike in Bitcoin’s price to over $47,600. However, SEC chairman Gary Gensler quickly clarified that the account had been compromised and the announcement was fraudulent, causing Bitcoin’s price to drop back to around $45,000.
Initial findings by X Safety suggested that the SEC hack occurred when an unidentified individual gained control of a phone number linked to the SEC’s X account through a third party. The SEC’s failure to enable 2FA on its account, a lapse in security measures, attracted considerable criticism from the crypto community.
These back-to-back security incidents on prominent X accounts highlight the growing need for enhanced cybersecurity measures, especially in the sensitive field of financial information and cryptocurrency markets. The crypto community’s response underscores the critical nature of reliable and secure communication channels for disseminating accurate financial data and news.