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- Hackers earned roughly $1.2 million by exploiting trading fees from the fake VLAD memecoin.
- The fraudulent token generated around $22 million in trading volume before being flagged.
- The incident highlights the growing danger of social media-driven crypto scams.
A cybercriminal briefly took control of Robinhood CEO Vlad Tenev’s X account and used it to promote a fraudulent memecoin called VLAD, triggering a rapid wave of speculative trading that ultimately generated an estimated $1.2 million for the attacker.
The incident highlights the growing risk of social media hacks in the crypto industry, where compromised accounts can quickly fuel hype around fake tokens before users have time to verify their legitimacy. It also raises new questions about the security of token launch platforms and the speed at which scams can spread across emerging blockchain ecosystems.
Fake VLAD Memecoin Explodes After Compromised X Post
On July 23, the attacker launched the VLAD memecoin on Robinhood Chain, the company’s newly introduced Ethereum Layer-2 network. After gaining access to Vlad Tenev’s X account, the hacker promoted the token as the “official mascot” of Robinhood Chain.
The post immediately attracted attention, sending traders rushing into the token. Within hours, VLAD recorded roughly $22 million in trading volume, while its price surged by more than 90,000%. The token also attracted more than 5,200 holders and generated approximately 137,000 on-chain transfers before the scam was exposed.
The rapid rise demonstrated how quickly fake endorsements from trusted industry figures can influence speculative crypto markets.
How the Attacker Made $1.2 Million
Unlike a traditional rug pull, the attacker did not drain the project’s liquidity pool.
Instead, the token was created through the Pons launchpad, which automatically locks liquidity but allows token creators to collect accumulated trading fees. By repeatedly withdrawing those fees, the hacker reportedly extracted around 650 ETH, valued at approximately $1.2 million to $1.3 million at the time.
The incident exposes a different type of exploit, where platform mechanics designed for legitimate creators can also benefit malicious actors.
Robinhood Responds Quickly
Robinhood’s communications team warned users about the compromised account roughly 40 minutes after the fraudulent promotion appeared. Soon afterward, X removed the misleading post, while the Robinhood Chain blockchain explorer flagged the VLAD project as a potential scam.
However, by that point, several imitation VLAD tokens had already appeared, attempting to capitalize on the confusion.
The attack followed Robinhood’s recent expansion into memecoins alongside tokenized real-world assets, making the fake announcement appear more believable. It also mirrors a similar attack earlier this month involving compromised social media accounts linked to major technology brands that were used to promote fraudulent crypto tokens.
The Robinhood CEO account breach is another reminder that verified social media accounts remain attractive targets for crypto scammers. As blockchain networks become cheaper and faster, fraudulent tokens can be created and promoted within minutes, leaving little time for investors to react.
Also Read: CASHCAT Jumps 17% as Robinhood Chain Explodes—Can Trump’s CLARITY Act Change Crypto Forever?
For traders, the incident reinforces a simple lesson: never rely solely on social media endorsements when investing in newly launched cryptocurrencies. Verifying announcements through official channels and exercising caution around viral token launches remain essential in today’s fast-moving digital asset market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
