Defiance Capital Flags Ecosystem Compromise, What Is Happening?

The broad cryptocurrency has seen a series of crypto scams within the last 24 hours and the latest is the attack was targeted at Defiance Capital.

Multiple Crypto Scams in 24 Hours

On June 22, an announcement showed up on the official X account of the hedge fund, informing its users of the DEFIANCE token launch. The post stated that all users are eligible for the token distribution and included a link that could potentially give users access to the token.

Shortly after the post went on X, Arthur Cheong, the founder and CEO of the company, publicly declared that Defiance Capital’s official X account had been hacked. He confirmed that the initial announcement was a scam and therefore, advised users against clicking on links.

This is a scam as our company’s X account is compromised. Please do not click on any link posted by the company account. https://t.co/8oqn7YPgIc

— Arthur (@Arthur_0x) June 22, 2024

Not much has been said concerning the scam or the bad actors who could be behind the exploit. Neither has there been an official report about any user who have fallen victim to the scam but this is not the case for BtcTurk which was equally hacked earlier.

On the same day, Turkey-based cryptocurrency exchange BtcTurk discovered a cyber attack on its platform that resulted in unauthorized access to some of its hot wallets. In the preliminary report that was released immediately after the hack was discovered, BtcTurk explained that the hackers managed to get their hands on some crypto balances. This spanned across 10 different cryptocurrencies stored in the hot wallets.

The cold wallets which contains most of the exchange’s assets remains unaffected according to BtcTurk. To allay the fears of its users, the Turkish crypto exchange says its financial strength can cater to the affected accounts. BtcTurk temporarily suspended deposits and withdrawal of digital assets on its platform as a precautionary measure.

The trading platform later confirmed that Binance was helping to recover the funds.

CoinStats Warns Users of Security Breach

Meanwhile, CoinStats has also warned users of a security breach affecting in-app wallets.

Based on the protocol’s published statement, some wallets created within the app were compromised in the security breach. Users were encouraged to transfer their funds to other platforms for safekeeping in the meantime. CoinStats also advised its users to export their private keys as a precaution to minimize possible losses.

The sudden occurrence of these scams calls for caution and vigilance on the part of crypto enthusiasts and investors. At this time, it is advisable to avoid phishing links or any other suspicious information.

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