Vivek Ramaswamy’s official X account, which is co-leader of the U.S. government’s Department of Government Efficiency (D.O.G.E.), was reportedly hacked and used to spread false information.
The compromised account announced a fraudulent partnership with USUAL, a fiat-backed stablecoin issuer, claiming it would help reduce the federal fiscal deficit through crypto initiatives. The fake news led to a temporary surge in the price and market cap of USUAL before the misinformation was debunked.
False partnership announcement causes market disruption
The hackers used Ramaswamy’s account to post about a supposed collaboration between D.O.G.E. and USUAL. The fake announcement claimed the initiative would enhance transaction efficiency and fiscal responsibility, aligning with the Trump administration’s goals. As a result, USUAL’s token price spiked by 31.08% to $1.61, while its market cap rose 38.73% to $720.2 million, according to CoinMarketCap. However, the trading volume fell by 7.76% to $1.6 billion.
USUAL price spike – Source: CoinMarketCap
The post was soon identified as fraudulent. Ramaswamy’s team swiftly removed it and confirmed that his account had been hacked. James Fishback, founder of Invest Azoria, publicly clarified the situation, stating that Ramaswamy had been locked out of his account. Fishback also labeled the announcement a scam, reassuring the public that no such partnership existed.
Hacking targets influential figures
Ramaswamy’s prominent role as co-leader of D.O.G.E., alongside Elon Musk, appears to have made him a target. His influence in government and the broader public spotlight has made him one of the most watched figures, especially amid divisive opinions surrounding his work with the Trump administration.
The attack on Ramaswamy is part of a larger trend of hacked social media accounts of influential figures promoting fraudulent cryptocurrency schemes. These scams typically aim to pump the value of a token before orchestrating a rapid sell-off, leaving unsuspecting investors with significant losses.
The surge in Crypto scams on social media
December has seen a wave of high-profile account breaches used to spread fake cryptocurrency promotions. Earlier this week, hackers compromised the X account of Anthropic, a leading AI firm, to promote a fraudulent token called CLAUDE. The fake token promised incentives for AI and crypto projects, luring investors to deposit funds. The scammers profited by dumping their holdings after the token’s price temporarily rose.
Other victims this month include celebrities like Drake, Cardi B, and Doja Cat. Hackers used their accounts to promote fraudulent meme coins, generating millions in trading volume before the schemes were exposed. Investors and followers continue to face losses, highlighting the growing risk of crypto scams tied to social media hacks.
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