Hackers recently took control of the X account belonging to former Malaysian Prime Minister Mahathir Mohamad. They used it to promote a fake cryptocurrency called MALAYSIA, which led to a loss of $1.7 million for investors.
This incident is part of a troubling trend involving fraudulent political meme coins. A similar scam occurred with the TRUMP token, which defrauded investors of $857 million.
The hackers posted that MALAYSIA was the country’s official crypto, claiming it was launched on the Solana network. They falsely presented it as a symbol of Malaysia’s strength in the digital economy. Although the post was removed within an hour, many investors had already invested their money. The hackers managed to cash out $1.7 million in just minutes.
Data shows that the market cap of the MALAYSIA token surged to $1.7 million in just 15 minutes before it collapsed. Investors were left with worthless tokens after the hackers executed a classic rug pull. This incident highlights the growing number of fake political meme coins. Scammers have previously exploited connections to political figures, including a former Brazilian President and even the US Treasury.
Ethereum co-founder Vitalik Buterin has warned about these scams and urged for more awareness among investors. The problem extends beyond political scams. Blockchain investigator ZachXBT reported that Coinbase users have lost $150 million to various scams. Additionally, there has been a staggering 2000% increase in phishing attacks on Telegram since November.
Experts believe these scams will continue to thrive. The rise of meme coins has diverted attention from traditional altcoins, leading to increased speculation in unregulated projects. As long as investors seek quick profits, fake tokens will likely attract significant funds. It is crucial for investors to remain vigilant and informed to avoid falling victim to these scams.
