Crypto Hack Hits Wiz Khalifa’s X Account: What to Know
The hack on Wiz Khalifa’s X account was to promote a scam coin. Millions were misled by the fake meme coin $WIZ, which crashed in value shortly after its launch on Solana’s pump.fun.
The Hack on Wiz Khalifa’s X Account
Rapper Wiz Khalifa’s X account has been compromised. Hackers used his platform to promote a scam meme coin, “$WIZ” to his 35.7 million followers. The now-deleted post from Khalifa’s account claimed he worked with his team to drop $WIZ for all crypto fans.
However, this was not a legitimate endorsement but a scheme orchestrated by attackers seeking quick profits. The $WIZ token was launched on the Solana-based platform pump.fun and reached a peak market cap of $3.4 million within 15 minutes of its release.
However, the coin’s value dropped dramatically within an hour as early investors, likely linked to the crypto hack, offloaded substantial amounts of the token. By the end of the first hour, the coin’s market cap had crashed to under $28,000 and continued to fall, eventually trading at around $8,400, according to DEX Screener data.
Blockchain analyst ZachXBT, known for tracking crypto scams, flagged the incident. He identified similarities with another crypto hack days earlier involving Truth Terminal developer Andy Ayrey’s X account.
Last month, Ayrey’s account was hacked to promote fraudulent coins, resulting in over $1.5 million in illicit gains for the hackers. ZachXBT’s analysis indicated that the same group was likely behind both attacks.
Was the Hack a Pump-and-Dump Strategy?
Solscan data showed that two primary wallets accumulated over 155 million $WIZ tokens shortly after the token’s release, purchasing them for about $19,100. These wallets then liquidated their holdings, profiting by approximately $160,000 before the token’s value collapsed.
The rapid drop in value highlights the scheme’s coordinated “pump-and-dump” nature, where attackers capitalize on initial hype to manipulate prices, leaving unsuspecting buyers with worthless tokens. Following ZachXBT’s warnings, the promotional posts on Khalifa’s account were removed, though no official statement has confirmed whether Khalifa or his team regained control over the account.
This hack underscored the importance of account security, especially for high-profile figures whose platforms can easily mislead followers into financial traps. The incident comes amid a surge of scams and fraudulent coins in the crypto space.
These perpetrators often target retail investors through celebrity endorsements—whether real or fabricated. This case reminds investors to approach new tokens cautiously, especially those promoted in high-profile accounts that could be compromised.
Bitfinex Crypto Hack Launderer Seeks No Further Jail Time
Meanwhile, Heather Morgan, known as the rapper “Razzlekhan,” is asking for no additional jail time ahead of her sentencing for laundering Bitcoin stolen from crypto exchange Bitfinex. Morgan’s lawyers submitted a filing recently requesting time served due to her cooperation and compliance with pre-trial release conditions.
Morgan and her husband, Ilya Lichtenstein, were accused by US authorities of laundering 120,000 Bitcoin, worth approximately $8.2 billion today, following the 2016 Bitfinex crypto hack. In August 2023, Morgan pleaded guilty to money laundering and fraud charges.
She faces up to 10 years in prison but hopes for leniency based on her limited involvement compared to her husband, who admitted to orchestrating the theft. Her defense team emphasized that Morgan only became aware of the crypto hack years later and was drawn into the criminal scheme due to loyalty to her husband.
Since her release in February 2022, she has complied with all court-ordered restrictions and worked to distance herself from her past persona as a rapper. Her lawyers stated that she has matured and moved away from her “Razzlekhan” alter ego, which they described as a distinct caricature.
Morgan’s defense also pointed to her brief pre-trial incarceration, which included recovering from surgery and contracting COVID-19, as additional reasons for leniency. They noted that she provided “substantial assistance” to US prosecutors in exchange for a lighter sentence.
Prosecutors Recommend Reduced Sentence
Prosecutors acknowledged that Morgan spent only a small portion of the stolen funds and was not a primary actor in the crime. Furthermore, they believe her involvement was largely influenced by her husband and her desire to protect their relationship.
Ilya, who orchestrated the hack, is scheduled to be sentenced on Nov. 14, one day before Morgan’s sentencing. Prosecutors have recommended a five-year sentence for him, a significant reduction from the 20 years he originally faced.
They cited his assistance in other investigations as a key factor for the reduced recommendation but still argued for a harsher sentence than Morgan’s due to his primary role in the theft. The Lichtenstein’s cases are set to conclude in mid-November, closing one of the most high-profile crypto-related criminal cases in recent years.
The hack was one of the largest in crypto history.
