Binance Co-CEO’s Compromised WeChat Sparks Pump-and-Dump Scheme
In a recent security breach, attackers hacked the WeChat account of Yi He, Binance’s newly promoted co-CEO, to orchestrate a pump-and-dump cryptocurrency scheme. The incident has highlighted ongoing risks associated with Web2 social media platforms.
How the Attack Unfolded
According to Binance founder Changpeng Zhao, attackers used Yi He’s compromised account to promote the MUBARA memecoin. Blockchain analysis revealed that two wallets purchased over 21.16 million MUBARA tokens for 19,479 USDT before the fake endorsements were circulated through WeChat.
The fraudulent promotion caused MUBARA’s price and trading volume to soar on decentralized exchanges like PancakeSwap. Exploiting the influx of retail buyers responding to apparent executive endorsement, the attackers managed to sell 11.95 million tokens for 43,520 USDT, netting a profit of $55,000. They still hold 9.21 million tokens worth around $31,000.
Binance’s Response and Security Concerns
Yi He clarified she abandoned her WeChat account years ago, but hackers leveraged the linked phone number to block her access. On social media platform X (formerly Twitter), Zhao advised followers to ignore promotional posts from compromised accounts, reiterating the need to stay vigilant when interacting with memecoin promotions.
The hack occurred shortly after Yi He took on her new role as Binance co-CEO during Binance Blockchain Week. This incident adds to the broader conversation about the vulnerabilities of Web2 platforms in the crypto industry.
Lessons for Investors and Social Media Security
Incidents like these showcase the risks crypto traders face, especially when reacting to endorsements that may not be authentic. Binance’s response serves as a critical reminder to double-check sources and approach speculative assets like memecoins cautiously.
For enhanced digital security, executives and traders should rely on dedicated, encrypted communication tools to avoid similar breaches in the future. Exploring secure alternatives like the Ledger Nano X for managing cryptocurrencies can also mitigate risk. Learn more about Ledger Nano X here.
