cryptopunk

Following the reported breach of Ethereum co-founder Vitalik Buterin's X (formerly Twitter) account, victims suffered losses exceeding $691,000 due to a malicious link that falsely promoted a free NFT.

Vitalik Buterin, co-founder of Ethereum (ETH) had his X (formerly Twitter) account compromised, which, according to social media reports, resulted in victims losing over $691,000 through malicious links.

In a Sept. 9 post on X, Dmitry Buterin, the father of Vitalik Buterin, announced that his son's account has been compromised:

“Disregard this post, apparently Vitalik has been hacked. He is working on restoring access.”

The post to which he was referring has since been deleted. It was allegedly made by the hackers on Buterin's account to celebrate the arrival of "Proto-Danksharding on Ethereum."

The hacker shared a malicious link to an alleged free commemorative non-fungible token (NFT) available, enticing victims to connect their wallets, before ultimately stealing all their funds.

WARNING! I JUST LOST A FEW PUNKS!

DON'T INTERACT! pic.twitter.com/lS4VvlHdVa

— chiefeditor.eth@encyclopediagalactica.eth ohgod.et (@BokkyPooBah) September 9, 2023

Consequently, this incident has led a user on platform X to claim they've suffered losses to their CryptoPunk NFT collection. 

At the time of publication, the prevailing minimum price for a CryptoPunk NFT stands at 46.99 Ether, which is approximately equivalent to $76,837.

Related: Blockchain Capital’s X account hacked to promote token claim scam

Blockchain investigator ZachXBT has been actively informing his 438,200 followers about the hacker's activities, which have led to the illicit draining of $691,000 from Buterin's followers through the malicious link.

Update: $691k drained (another 33% in drainer fee address) pic.twitter.com/AVIShqDlMU

— ZachXBT (@zachxbt) September 9, 2023

A user on X claimed that Buterin might not have implemented sufficient security measures for his X account.

"I hate to be the one to say it, but Vitalik should take accountability for his poor op-sec and compensate those affected," he noted, before implying that he believes Buterin's oversight led to the attack:

The only way this isn’t negligence on Vitalik part is if someone at X internally compromised the account, or if he was coerced in person by a criminal who threatened violence. I highly doubt that’s what happened. 

However, ZachXBT challenged these allegations, asserting that Buterin's high profile makes him susceptible to various forms of hacking attempts:

"You do not know yet whether it was a SIM swap. Vitalik is a big enough target to where an insider could have been paid off or panel was used," he stated.

Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in