Animoca Brands co-founder Yat Siu’s social media account was recently compromised to falsely promote a purported crypto token, $ANIMOCA, on the Solana blockchain. A public notice from Animoca Brands clarified that there are no official token or non-fungible token (NFT) launches associated with the company at this time. The company urged users to avoid any interactions with the compromised account until it is restored.
Concerns have arisen about the increasing number of Solana-based meme coin scams. Solana’s infrastructure has been identified as prone to unique vulnerabilities, which have made it a target for fraud. The U.S. Department of Justice has indicted two California men for running NFT scams that defrauded investors of over $22 million, highlighting ongoing security issues within the Solana blockchain. These scams exploit Solana’s token account structure and its one-step transaction approval process, which facilitate the execution of fraudulent activities and make fund recovery challenging.
Animoca Brands, established in 2014 by Yat Siu and David Kim, started as a mobile game developer but shifted focus in 2018 to blockchain gaming and NFTs, positioning itself as a significant entity within the Web3 industry. The compromise of Siu’s account underscores the ongoing pressure on digital security, especially in blockchain and cryptocurrency sectors. Animoca Brands has promised to provide updates when the situation is resolved.
