As the Solana meme dog scams increase, Animoca Brands has released a public notice about the compromise of X co-founder Yat Siu's account.
The official statement makes it clear that recent claims regarding the launch of the $ANIMOCA token or non-fungible tokens on the Solana blockchain, attributed to Animoca Brands, were the result of malicious activity by the -draw. Kenta, a crypto game streamer, first did the research.
The Hong Kong-based game software company said that so far, there is no official token or NFT launch related to Animoca Brands and urged its users not to get involved in the account applied. Animoca Brands has promised further updates once the account is restored.
Founded by Yat Siu and David Kim Animoca Brands Corporation in 2014. The company initially focused on developing mobile games but shifted its focus in 2018 to blockchain games and NFTs, becoming a major player in the Web3 space.
Vulnerability on the Solana blockchain
This is not the first time Solana blockchain has been used to execute a scam. Solana's infrastructure exposes users to certain vulnerabilities. Recently case that the US Department of Justice shed light on this matter, with the Department of Justice charging two men from California, Gabriel Hay and Gavin Mayo, with running an NFT rug drawing on Ethereum and Solana that spend over $22 million to customers. Such withdrawals included touching fake NFT projects like Landscape Gems and Faceless and absconding with investors' money. The case is the largest NFT fraud the DOJ has prosecuted. In addition, Drakethe Canadian singer, also applied his account to promote Solana-based meme money Anita.
Why Solana is at risk of scams?
Although Solana's architecture may have been designed for efficiency, it contains several risks that make it more susceptible to scams compared to other networks. The token account structure used by Solana allows attackers to reassign asset ownership using specific commands, leaving property almost unrecoverable.
Also, Solana's one-step transaction authorization—compared to Ethereum's multi-step share of contract actions—can result in immediate and irreversible loss once a malicious transaction is authorized. The platform's ability to combine multiple sub-transactions into one license also adds to the unprecedented risk of theft.
Scammers also take advantage of Solana's Constant nonce the ability to cancel the execution of fraudulent activities, avoid warnings and surprise victims. This, along with user ignorance of the operational risks de Solana, making it a prime target for scams.
