In a security breach, the Twitter account of Circle’s USD Coin (USDC) stablecoin chief strategy officer Dante Disparte has been compromised. The hack resulted in the promotion of fake loyalty rewards for long-time USDC users, which was tweeted from Disparte’s account and later deleted. Prior to the incident, the account had been tweeting about the regulatory developments of the firm and its participation in Paris Blockchain Week.
The security breach comes less than a month after the USDC briefly depegged due to reserve deposits left in the custody of defunct American tech bank Silicon Valley Bank. However, the incident was resolved, and the USDC has repegged, although there is still a slight variance with the stablecoin’s peg at the time of publication.
Circle’s USDC stablecoin is a regulated cryptocurrency that is backed by US dollars on a one-to-one basis. The stablecoin has been gaining popularity as a means of conducting transactions on cryptocurrency exchanges due to its stability compared to other cryptocurrencies, which are known for their volatility.
Hacking incidents have been prevalent in the cryptocurrency industry, with high-profile cases including the 2014 Mt. Gox hack, which resulted in the loss of around 850,000 bitcoins. In response to the incident, Circle has not provided any further details about the security breach or the steps it has taken to mitigate the damage caused by the hack. However, it is likely that the company will conduct a thorough investigation to determine the extent of the breach and prevent similar incidents from occurring in the future.
The security of cryptocurrencies and their related infrastructure is a pressing concern for regulators and market participants alike. In response to these concerns, regulatory bodies around the world have been implementing new measures to safeguard cryptocurrency exchanges and other digital asset platforms. The recent hack of Circle’s USDC stablecoin chief strategy officer’s Twitter account highlights the need for increased security measures and greater vigilance in the cryptocurrency industry.