Hackers breach ai16z founder account and promote scam ELIZA token
The official Ai16z team promptly addressed the situation
Hackers hacked the account of X Shaw (@shawmakesmagic), founder of Eliza Labs and AI agent token ai16z, to promote a fraudulent token named ELIZA.
This incident led to a significant sell-off, causing Ai16z's token price to plummet by over 15%, reaching a low of $0.355 before slightly rebounding to $0.3922, The Crypto Basic reported.
Key takeaways
- Unauthorized promotion: Hackers used Shaw's compromised account to advertise a scam token, misleading investors.
- Market impact: The breach resulted in a sharp decline in Ai16z's token value, with a drop of more than 15%.
- Security measures: Despite Shaw's use of two-factor authentication and strong passwords, the attackers managed to bypass these defenses.
Unauthorized promotion
On February 16, 2025, Shaw's X account was hijacked by malicious actors who utilized his platform to promote a Solana-based token dubbed ELIZA. This unauthorized endorsement led to a surge in the scam token's value, reaching a peak of $0.01162 before investors recognized the deceit.
The official Ai16z team promptly addressed the situation, clarifying that no new token had been launched and cautioning users against engaging with the fraudulent ELIZA token.
Market impact
The immediate aftermath of the hack saw Ai16z's token price drop precipitously by over 15%, hitting a low of $0.355. This decline reflects the market's sensitivity to security breaches and the potential erosion of investor confidence. While the token has since recovered slightly to $0.3922, the incident underscores the volatility and risks inherent in the cryptocurrency landscape.
AI16Z Price. Source: СoinGecko
Security measures
Shaw, upon regaining control of his account, described the breach as a "well-designed and targeted" attack. He emphasized that his account was secured with multiple layers of protection, including two-factor authentication (2FA), a robust password manager, and a strong password. The fact that these measures were circumvented highlights the evolving sophistication of cyber threats targeting high-profile figures in the crypto industry.
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It's worth noting that not everyone believed Shaw. This is due to recent statements by scandalous rapper Kanye West. He accused the company of earning $2 million dollars for fake hacking and tricking the Solana community into promoting a scam token.
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This incident serves as a stark reminder of the importance of robust security protocols and the need for continuous vigilance in the digital asset space. Investors are urged to verify information through official channels and exercise caution, especially when confronted with unexpected promotions or token launches. The Ai16z team has reiterated its commitment to safeguarding its community and is likely to implement enhanced security measures to prevent future breaches.
Earlier we wrote AI16Z token surges 35%, market cap reaches $1.36B on listings.
