CoinSwitch Hacked: Fake Token SWITCH Promoted via Compromised X Account

Generated by AI AgentCoin World
Thursday, Feb 13, 2025 4:35 pm ET1min read
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CoinSwitch, one of India's leading cryptocurrency exchanges, fell victim to a cyber attack on Wednesday when hackers gained control of its verified X (formerly Twitter) account. The hackers exploited the compromised account to promote a fake token named SWITCH, falsely claiming it was CoinSwitch's native token and was about to launch.

The misleading post was published in the early afternoon Asian time, hinting that SWITCH, a Solana-based token, was to go live for trading at 8 AM UTC. CoinSwitch swiftly regained access to its account an hour later and deleted the phony announcement, putting an end to the attempt to deceive the community.

CoinSwitch CEO Ashish Singhal confirmed the breach, assuring users that no money or information had been lost. He urged the community to ignore any Switch rumors, stating that the exchange was not related to the token.

Further investigation revealed that the scam token was issued on Pump.fun, a site known for launching dubious memecoins. At the time of the discovery, SWITCH had a negligible market capitalization of only $4,075 and traded at $0.000004168. As of writing, SWITCH is trading at $0.0005497, rallying in green and increasing by 3.66% in the last 24 hours. The scammers attempted to legitimize their scheme by misrepresenting the token as part of a reward system for leading traders.

Cyber attacks targeting crypto exchanges and blockchain projects have been on the rise, with attackers using social media hijacking to spread misleading information and mislead investors. The attack on CoinSwitch highlights the need for improved security controls and user education to prevent such scams.

In response to the incident, CoinSwitch strengthened its security controls to prevent future breaches. The company urged users to verify official notices only through its website and genuine communication channels. Additionally, CoinSwitch asked the community to beware of fraudulent schemes and report suspected malpractices.