Tether CEO Flags Security Risk In Email Newsletter Vendor for Crypto Firms

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Paolo Ardoino, the CEO of Tether, has warned about a potential security breach concerning a well-known email vendor often utilized by cryptocurrency firms.

Tether CEO Hints Details On The Email Service Provider Breach

In a post on X, Ardoino stated that the firm had received two independent confirmations indicating that a prominent vendor commonly used by crypto companies to manage mailing lists might have been compromised. He mentioned that the vendor’s name won’t be revealed yet until the investigation wraps up. However, he recommended being careful with any emails related to crypto-airdrops received in the last 24 hours. 

Bobby Ong, who is the COO and co-founder of CoinGecko, validated Ardonio’s post shortly after. He stressed the wider impact, mentioning that multiple crypto firms might face email campaigns promoting fake token releases.

As the investigations progresses, Tether and CoinGecko have recommended users to be extra careful with email communications, particularly those that claim to offer crypto-airdrops or new token releases.

Phishing Scams Is An Old Foe, New Trick In The Crypto Industry 

Crypto email security breaches are a common issue in the industry. Just last year, The Sandbox, a blockchain metaverse company, faced a similar situation. The breach led to hackers getting into the email addresses of users, which were later used for sending phishing emails pretending to be from the project.

Unfortunately, many crypto companies have been affected by crypto fraud, phishing scams, and illicit activities in the industry. In 2022, OpenSea was targeted by an ongoing phishing attack shortly after revealing plans for a week-long upgrade to delist inactive NFTs permanently. 

In 2023, creditors of the defunct crypto hedge fund Celsius Network were the victims of a new waves of phishing attacks at the time. The scammers tried to impersonate Stretto, the bankruptcy service platform used by the crypto lender and its creditors. 

In that same year, RTFKT’s COO, Nikhil Gopalani lost a Non-fungible token (NFT) valued at over $173,000 to that awful phishing scam. Rare Bears also lost its unique hand-drawn NFTs to a phishing link.

Several crypto firms such as Ripple Labs, MetaMask, and government agency, Federal Bureau of Investigation (FBI) have issued a warning to the public about the several phishing schemes used by scammers in the past. 

Crypto Frauds and Breaches Remains A Persistent Threat 

Crypto scams and hacks continue to be a significant worry in the cryptocurrency sector. Kaspersky’s survey reported that Bitcoin phishing attacks surged by 40% compared to the previous year in 2022.

SlowMist, a blockchain security company, also verified that hackers made off with approximately $3.5 billion in cryptocurrencies in 2022.

In May 2024, a total of $574 million in digital assets were lost in 30 separate crypto hacks, as disclosed in a June 1 post by PeckShield

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