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

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

Frax Finance founder’s statement on Telegram | Source: Telegram

In a Telegram post on Jun. 3, the Frax Finance head said the team is “reasonably sure” it has the identity of the criminal that perpetrated the X account, blaming a “serial scammer” that ZachXBT, a blockchain sleuth, is “aware of.”

“We will try our best to bring that person to justice. And again to be clear to anyone reading this: this wasn’t a security issue and no one on the team was phished or anything. This was an inside job.”

Sam Kazemian

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

If anyone has a direct line to X account/customer service please DM me, @fraxfinance X account is compromised and appears to be inside job or social engineering within X since no password reset or other issues within Frax itself. Please stay safe and don't click any X links!

— Sam Kazemian (¤, ¤) (@samkazemian) May 31, 2024

This incident adds to a growing list of crypto projects attributing breaches to insider actions at X. Thus far, neither X nor its chief executive Elon Musk has commented on the situation.

In a similar event in late May, a crypto 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 developers behind the Solana-based memecoin CAT might be involved in that hack. It remains unclear whether the same group is responsible for the attack on Frax Finance.

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