Robinhood's Twitter account was hacked earlier on Wednesday and used to promote a fraudulent crypto project.
The hackers announced the launch of a new token called $RBH, which they said was available on the Binance Smart Chain for $0.0005.
According to data from Blockchain explorer, around 25 people purchased the scam token before the link was taken down. The total amount purchased was less than $8,000.
"We’re aware of the unauthorized posts from Robinhood Twitter, Instagram, and Facebook profiles, which were all removed within minutes," Robinhood said in a blog post. "We believe the source of the incident was via a third party vendor."
After the hack was identified, some Twitter users noticed that transactions had been sent to the phony account via Binance Hot Wallets. In response, Binance's CEO, Changpeng Zhao, or CZ, tweeted about the hack, stating that "our security team also noticed that and have locked the account pending further investigations."
Crypto hacks accelerated rapidly in 2022, topping a total of $3 billion in total funds loss throughout the year, according to a report from Chainanalysis.
Update: This story was updated with information about CZ's response to the hack and comment from Robinhood.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.