Binance Co-CEO’s WeChat Account Hacked to Promote Meme Coin, CZ Issues Warning

The WeChat account of Yi He, Binance's new co-CEO, was hacked to promote a meme coin, prompting a warning from Binance founder Changpeng Zhao. He urged users to be cautious, as the incident highlights vulnerabilities in social media security. The situation unfolded just after Yi He was named co-CEO, amid growing concerns about potential market manipulation linked to the promotion of a lesser-known token.

Key Takeaways

Yi He's WeChat account was hacked and used to promote a meme coin called MUBARA.
Changpeng Zhao warned users about the security risks associated with social media.
The hack has resulted in significant price manipulation for MUBARA, with large profits made by the attacker.
Yi He stated that her linked phone number was compromised, preventing her from recovering the account.

Binance

Hacking Incident of WeChat Account Linked to New Leadership at Binance

Changpeng Zhao, founder of Binance, has alerted users about the hacking of Yi He’s WeChat account, which is being misused to promote a meme cryptocurrency. Zhao emphasized that attackers leveraged this account to push promotions for meme coins and advised users to avoid engaging with such offers.

Zhao shared a message expressing his concerns, stating, "Web2 social media security is not that strong. Stay safu!" He humorously added his hope that his account doesn’t become next, noting that he hasn’t used WeChat in years and doesn’t promote meme coins. He reminded everyone to exercise caution.

Yi He responded by mentioning she stopped using WeChat a long time ago. Due to her phone number being compromised, she is unable to regain access to her account.

Binance's Leadership Transition Coupled With Meme Coin Exploit

This security breach occurred shortly after Binance appointed Yi He as co-CEO during the recent Binance Blockchain Week. Co-founder Richard Teng praised her significant impact and contribution since the company’s inception. He emphasized that her promotion reflects the natural development of Binance’s leadership, aligning with the goal of reaching one billion users.

According to blockchain data, the hack quickly transitioned into a trading scheme. The analytics firm Lookonchain described the event as a classic case of a hacked account being used for a “pump and dump” scheme, centered around a little-known token named Mubarakah (MUBARA), which is traded on decentralized exchanges.

Sudden Surge in MUBARA Price Triggered by Fake Endorsement

As per the analysis, the hacker accessed Yi He’s WeChat account and used the apparent endorsement to create a fear of missing out (FOMO) around MUBARA. Following this, two new wallets were created just hours prior, which began purchasing MUBARA tokens via PancakeSwap and other decentralized exchanges, spending a total of 19,479 USDT to acquire about 21.16 million MUBARA.

The promotion on WeChat quickly spread, leading traders to chase the rally, resulting in a sharp increase in both price and trading volume of MUBARA, as shown on Dexscreener charts.

Profits Made by The Attacker Through Market Manipulation

Once liquidity flooded in, the wallets associated with the attacker began selling into the price rally. Lookonchain estimates that the hacker has already sold approximately 11.95 million MUBARA for 43,520 USDT and still possesses 9.21 million tokens, valued at roughly $31,000. This suggests the attacker has potentially secured a profit of around $55,000, with more tokens available to sell if liquidity conditions remain favorable.

In practical terms, the attacker managed to front-run the market by making early purchases and used the compromised account to attract retail demand, only to later offload a significant portion of their holdings during the spike, leaving later investors at risk of a swift price reversal. The remaining token holdings provide the hacker with leverage to continue selling, contingent on ongoing liquidity.