Hackers Use Nasdaq Account X in $80 Million Fake Coin Scam

The official X account of global electronic marketplace Nasdaq has apparently been hacked and used to promote a fake coin named STONKS.

Blockchain data shows that the fake token’s market cap soared to $80 million before ultimately collapsing.

How the scam unfolded

According to various reports, the attackers took control of the Nasdaq account and linked it to a fake X profile, @nasdaqmeme, complete with a verified gold badge marking it as an affiliate.

They then posted a message promoting the fake STONKS coin and retweeted it on the Nasdaq account, which has more than 133,000 followers. The retweet and apparent connection between the two accounts created a facade of credibility, enticing unsuspecting investors to purchase the token.

In a matter of hours, STONK’s value soared 390 times from its initial price, with DEXscreener data showing the token reached a market cap of $80 million and trading volumes exceeding $185 million.

However, the cryptocurrency’s meteoric rise came to an abrupt end when its value plummeted to zero, leaving investors with huge losses. Some accounts suggest that the scammers walked away with at least $4 million after scamming the coin.

Interestingly, the fraudulent profile used in the scam was a copy of an existing Solana coin, STNK, with the social media handle @STONKS_SOL.

The legit STONKS team has warned the crypto community about the scam and announced its intention to continue the fake project.

STNK launched in April 2021 as the first ever joke token on the Solana network. It is based on the “Stonks” meme created in 2017 by Henry Hooper and made famous by the Gamestop short squeeze saga on r/wallstreetbets.

Social accounts under threat

The hacking incident sparked widespread reactions within the community, with many expressing disbelief at its audacity and sophistication. Crypto trader CRG describe it’s the ‘best scam’ they’ve ever seen, while other users have highlighted the alarming ease with which scammers obtained a verified affiliate badge.

As of this writing, Nasdaq has not commented on the incident, although the offending post has been deleted and the @nasdaqmeme account has been suspended.

Incidents of bad actors taking over social media accounts to promote fake cryptocurrencies have increased in recent times. Towards the end of last year, blockchain investigator ZachXBT exposed an elaborate scheme in which hackers compromised 15 X accounts and used them to promote fake coins. The criminals are said to have made off with at least $500,000 thanks to this operation.

In another incidentanother group of scammers targeted the accounts of celebrities on social media, including singer Usher, rapper Wiz Khalifa and actor Dean Norris, to distribute a multitude of counterfeit tokens on Pump.fun, stealing up to $3.5 million.