It has become known that Coinbase saved over 1,000 users from sending Bitcoins to scammers in the recent Twitter hack.
It appears that the Twitter hack of the about 130 accounts of famous people and companies could have been worse. Last week, accounts of majors brands, politicians, world leaders, and celebrities were hacked. The hackers perpetuated a Bitcoin doubling scam that raked in $121,000 worth of BTC at the time.
The account hacks have created a dangerous precedent. One where users of social media accounts aren’t sure of the security of their accounts. In addition to this, the hack has also eroded the growing confidence in the crypto space.
The Twitter hack could also have generated a lot more. Sources say that last week, popular U.S. cryptocurrency exchange Coinbase had blocked the accounts of over 1,000 users within minutes.
Coinbase Prevented Loss of 30.4 Bitcoins in the Twitter Hack
If the Coinbase staff weren’t vigilant, about 30.4 Bitcoins worth $278,920.61 more could have been lost. Other exchanges also scrambled to blacklist the destination Bitcoin address and its associated transactions.
It has raised concerns about exchanges blacklisting transactions that seem suspicious. The libertarians are up in arms. It also raises further questions about Bitcoin centralization. It gives the idea that if not for a coordinated response, the hack could have snowballed into millions of dollars.
Twitter said in a blog post that the hackers “targeted certain Twitter employees”. The hackers used internal administrative tools to access 130 verified accounts. This chilling revelation brings to light critical holes in the security systems of technology giants.
The social media company moved to restrict tweets for all verified accounts. It prevented critical services from passing information to followers on the platform.
We are all still figuring out who will be watching over those who are watching over us. And figuring this out will be no easy task. Having several angles to information security is critical. Such incidents are avoidable. The Twitter hack also gives rise to other chilling possibilities. The allegations of election manipulations in the last U.S. election offer a clue.
Social media allegedly played a role in determining the outcome of the last U.S. election. If the response rate of Twitter followers is anything to go by, this could happen again. This time, a hack on a massive scale will be needed.
Blackswan Events Always Have Consequences
Such “Blackswan” events have unintended consequences for many. The loss of Bitcoins to the scammers is one. It also brings to light the increasing dependence on social media for information. Rather than turn to legitimate news sources, people now turn to social media for their news.
Another social media hack could cause outages in stock markets, riots, and other chaotic events. The likelihood of this, for now, is slim.
The hackers are yet to be identified. There are ongoing investigations. Sources say that the Twitter hack bears patterns similar to those of an underground “OG” community.
If these allegations are anything to go by, the hackers could be found soon.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.
