Frax Finance, the decentralized stablecoin protocol behind FRAX USD, suffered a security breach on June 1, losing access to its X account. Founder Sam Kazemian believes the hack to be an inside job, not a result of security flaws or phishing attacks. Kazemian has identified the alleged perpetrator, a "serial scammer" known to blockchain investigator ZachXBT, and is working towards bringing the individual to justice.

The breach did not result from compromised passwords or internal security issues within Frax Finance. Instead, Kazemian suggests potential social engineering and insider involvement at X. The X account of Frax Finance remains active, but no new posts have been visible since the hack.

This incident is the latest in a series of hacks targeting crypto projects, allegedly linked to insider actions at X. Crypto trader GCR reported a similar compromise of his X account in May, attributing the breach to bribery. The attackers allegedly used his account to promote a pump-and-dump scheme involving ORDI and LUNA2. Investigations are ongoing to determine if the same group is behind the attack on Frax Finance.