Cerebras, a renowned manufacturer of massive AI chips, recently found itself at the center of a sophisticated cryptocurrency scam after its official X account was compromised, leading to the fraudulent promotion of a cryptocurrency coin named Cerebras.
The deceptive scheme began to take shape on June 15, when a cryptocurrency coin bearing the Cerebras name and the token $CEREBRAS was launched, instantly drawing suspicion from industry trackers and cryptocurrency observers. Concerns were raised almost immediately that the newly introduced coin bore the hallmarks of a “rug pull” or a scam designed to defraud unsuspecting investors. One such alert highlighted the dangers, stating, “This coin launched now and it might be a RUG💀Avoid betting on this one!📈 Token: $CEREBRAS📍CA: EHbyWyh5P3hDJgnLQvmedDuhgagrP5cT5e9VoVULzBLV✅Calling GEMs Here : https://t.co/DHjpzgLhAf.” This stark warning underscored the immediate threat posed by the dubious token.
Upon the appearance of the fraudulent coin, key personnel within Cerebras were quick to distance the company from any involvement. James Wang, the Director of Product Marketing, and Andrew Feldman, the CEO, both vehemently denied any association with the cryptocurrency launch. Their rapid response aimed to preempt any misconception that the legitimate AI hardware company had ventured into the volatile world of cryptocurrencies.
Just a couple of days subsequent to the coin’s launch, the situation escalated dramatically when the official Cerebras X account itself was compromised. The unauthorized parties gained control and began using the platform to actively promote the fraudulent cryptocurrency scheme. Cerebras confirmed the breach to Tom’s Hardware, stating, “The official Cerebras Systems X account has been taken over by unauthorized parties to promote a fraudulent cryptocurrency scheme.” This act of digital hijacking served to lend an air of false legitimacy to the scam, leveraging the company’s established reputation to lure potential victims.
Although the deceptive posts disseminated during the period of account compromise were subsequently deleted, a crucial piece of evidence linked the account hack directly to the initial fraudulent coin launch. The Contact Address that was promoted through the compromised X account precisely matched the address of the fake coin that had been identified by industry observers on June 15. This undeniable correlation strongly suggested a coordinated effort, indicating that the launch of the fraudulent token and the hacking of Cerebras’s X account were part of the same malicious operation.
In response to the egregious breach and the ongoing scam, Cerebras issued a crystal-clear declaration to its stakeholders and the public: “Please be aware: Cerebras does not, and will never, launch or endorse any cryptocurrency or token. We are working to regain control of the account. Stay alert and protect yourself from scams.” This unequivocal statement served to reassure investors and customers that the company’s core business remains firmly rooted in AI hardware development, with no deviation into the realm of digital currencies. It also underscored the company’s commitment to swiftly resolving the security incident and protecting its community from fraudulent activities.
As of the time of publication, Cerebras appeared to have successfully re-established full control over its X account. The absence of any suspicious activity on the platform for the past 24 hours signaled that the immediate threat had been contained and the company’s digital presence secured once more. This diligent effort to regain control was critical in mitigating further damage and preventing additional individuals from falling prey to the scam.
Cerebras’s reputation as a leading innovator in the AI sector precedes it. The company is widely recognized for its development of massive AI chips, and it proudly claims to be the sole entity globally building AI hardware at a wafer-scale. This groundbreaking approach allows for unprecedented computational power and efficiency. Furthermore, Cerebras holds an impressive world record for LLM (Large Language Model) inference speed. Its performance on the 400B parameter Llama 4 Maverick model clocked over 2,500 tokens per second (t/s), a remarkable achievement that more than doubles the output performance of Nvidia’s flagship solution, highlighting Cerebras’s technological superiority in specific AI applications.
The company’s significant advancements and market position were further underscored by its filing for an Initial Public Offering (IPO) in October of 2024, a move that signals its intent for further growth and expansion. Cerebras boasts truly astonishing hardware, exemplified by its 900,000-core AI processor. This powerful processor is conceptually equivalent to the computational capacity of 62 Nvidia H100 GPUs, showcasing the sheer scale and raw processing strength of Cerebras’s proprietary technology. The incident serves as a stark reminder that even leading tech companies with robust security measures can become targets for sophisticated cyber threats, especially those aiming to exploit their brand for illicit financial gain.
