Robinhood's Social Media Accounts Hacked for Promoting Scam

Robinhood community informed that several social media accounts were hacked to promote a scam token. The token was promoted via the official Twitter account of Robinhood and was named $RBH.

The Twitter post notes that the upcoming token is developed on BNB Smart Chain, and the launching price is $0.0005.The notification of hackers’ posts was sent to around 1.1 million Robinhood followers.

The community replied to a Twitter user, noting, “We’re aware of the unauthorized posts from Robinhood Twitter, Instagram, and Facebook profiles, which were all removed within minutes. At this time, based on our ongoing investigation, we believe the source of the incident was via a third-party vendor.”

Although the original post from Robinhood’s account has been deleted, most users have taken a screenshot and posted on the account, seeking answers from the community.

Meanwhile, the head of product business operations leading crypto exchange Coinbase posted on his Twitter account that about 10 people had already purchased some $1000 worth of tokens before the tweet was deleted.

Looks like Robinhood’s social media was hacked
They only got ~10 people to bite on the scam token before the link was taken down.
So far the token has only seen <$1000 in purchases. I imagine people crowding in now saw the volume spike and are looking for a thrill. pic.twitter.com/qladVaSzrI
— Conor (@jconorgrogan) January 25, 2023

The U.S. prosecutors have seized shares of Robinhood Markets Inc (NASDAQ: HOOD) hundreds of millions of dollars worth of Robinhood Markets shares as part of the fraud case against Sam Bankman-Fried (SBF), as the lawyers said in court on January 4, 2023.

FTX was once the third-largest cryptocurrency exchange in the world, and some people were saying that Sam Bankman-Fried would be the industry’s future. But then, a chain of events led FTX to file for chapter 11 bankruptcy on November 11, 2022.

Sam is not facing legal trials where he had pleaded not guilty to all the charges. And now he had filed a court action asking that the block debtors from taking control of an approximately $450 million stake in Robinhood.

The petition said that Sam Bankman-Fried and the former FTX CTO Gary Wang, who had pleaded guilty with Caroline Ellison, bought a 56.2 million share stake in Robinhood through a special purpose vehicle called Emergent Fidelity Technology. These borrowed the amount via promissory notes to purchase the shares from Alameda.

While writing this article stock price of Robinhood was trading at $9.71. However, the share prices increased by more than 15% in the last six months.