Frax Finance founder says ‘serial scammer’ hacked X account

The founder of decentralized finance protocol Frax Finance says the team is “reasonably certain” about the identity of the criminal who hacked the project’s X account.

Frax Finance Founder Sam Kazemian alleges that an inside job at X caused the project’s account to be hacked, resulting in the loss of access to the protocol behind the FRAX USD-pegged decentralized stablecoin in early June.

Statement from the founder of Frax Finance on Telegram | Source: Telegram

On a Telegram Post On June 3, the head of Frax Finance said the team is “reasonably certain” it has the identity of the criminal who perpetrated Account X, blaming a “serial scammer” of which ZachXBT, a blockchain detective, is “ aware”.

“We will do our best to bring this person to justice. And again, to be clear to anyone reading this: this was not a security issue and no one on the team was a victim of phishing or anything like that. This was an inside job.”

Sam Kazemian

The hack, which occurred in early June, appeared to involve an inside job or social engineering within X rather than a security breach or phishing attack targeting the Frax team, Kazemian said on his X account shortly after the incident. Currently, Frax Finance’s X account remains active, but no new posts are visible.

This incident adds to a growing list of crypto projects that attribute breaches to internal actions at X. So far, neither X nor its chief executive, Elon Musk, have commented on the situation.

At a similar event in late May, a cryptocurrency trader known as GCR reported that his X account had been compromised through bribery, leading to an ORDI pump and dump scheme. Blockchain sleuth ZachXBT later suggested that the developers behind the Solana-based CAT memecoin could be involved in this hack. It is not yet clear whether the same group is responsible for the attack on Frax Finance.

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