In an age where technology leaders are at the forefront of innovation, they are also increasingly becoming targets for cybercriminals seeking to exploit their reputations. Recently, Cerebras Systems, a leading AI chipmaker known for its cutting-edge hardware and collaborations with government bodies, fell victim to such an attack. The company’s official X (formerly Twitter) account was compromised and used to promote a fake cryptocurrency scheme involving a non-existent token called $CEREBRAS.
The Cerebras fake cryptocurrency scam underscores a growing risk facing technology companies today: social media account breaches that could harm their credibility and mislead the public. Let’s break down what happened, how Cerebras responded, and why this incident raises larger concerns about cybersecurity in the tech and crypto ecosystems.
What Happened: A Summary of the Hack
In mid-June 2025, users of X were surprised to see unusual posts from the official account of Cerebras Systems. The posts announced the launch of a new cryptocurrency token — $CEREBRAS — and promoted it as an exclusive offering from the company. The messages urged followers to participate quickly in what was framed as an innovative digital asset opportunity.
However, sharp-eyed observers were quick to note that something seemed amiss. The supposed $CEREBRAS token had no prior announcements, no whitepaper, no official backing from Cerebras, and had only been listed days before on June 15, 2025. The sudden emergence of this token, combined with aggressive promotion tactics, triggered skepticism across the tech and crypto communities.
Company Response: Swift Denial and Reassurance
It didn’t take long for the real voices at Cerebras to speak out. CEO Andrew Feldman and company director James Wang responded directly on X, clarifying that no such cryptocurrency had been launched.
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Andrew Feldman: “No. We did not. This is a scam.”
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James Wang: “Cerebras is not launching a token. It’s a scam. Do not click.”
Once the company regained control of its X account, it issued a formal statement:
“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.”
Since then, no further suspicious activity has been reported on Cerebras’ social media.
The Anatomy of the Scam
The Cerebras fake cryptocurrency scam followed a well-worn pattern seen in recent crypto frauds:
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Hijack a trusted social media presence.
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Announce a “new token” or “exclusive opportunity.”
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Create urgency to lure victims into quick, ill-informed transactions.
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Disappear with the funds once enough unsuspecting people have contributed.
Such schemes are often referred to as rug pulls, where the project is abandoned after collecting assets from the public.
Why Cerebras Was Targeted
Cerebras Systems, renowned for its Wafer Scale Engine chips and its leadership in AI hardware, is a high-profile company. It works with major government entities, including recent collaborations with the U.S. military and a $45 million joint contract with Canadian startup Ranovus aimed at advancing inter-chip communication.
The brand’s association with innovation and high-value projects makes it an attractive target for cybercriminals seeking to leverage that reputation for fraudulent schemes. The hackers likely counted on the public’s unfamiliarity with Cerebras’ operations outside of technical circles and hoped that the legitimacy of the brand would mask the scam, at least briefly.
The Rising Tide of Crypto Scams
Cryptocurrency scams have exploded in recent years. According to blockchain analytics firms, fraud involving crypto projects cost investors billions of dollars globally in 2024 alone. Social media platforms have become one of the most common channels for these frauds, given their wide reach and the trust people place in verified company accounts.
In the case of Cerebras, the scammers may have hoped that followers would take the bait before industry experts could issue warnings. Fortunately, the tech and crypto communities reacted quickly, helping limit the spread and potential damage.
The Larger Issue: Social Media Security
This incident highlights a major challenge facing companies today: securing their online presence. Even firms at the cutting edge of AI and hardware engineering can fall victim to account takeovers if their social media security practices aren’t airtight.
Best practices to prevent such incidents include:
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Enabling multi-factor authentication (MFA).
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Using dedicated devices for account access.
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Regular password updates and complex credentials.
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Monitoring for unusual login activity.
It’s worth noting that even with these measures, attackers continue to develop sophisticated methods, and no system is entirely immune.
Cerebras’ Ongoing Achievements Despite the Incident
While the breach drew temporary unwanted attention, Cerebras continues to make headlines for the right reasons. The company recently showcased record-breaking speeds in large language model (LLM) inference:
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Achieved 2,522 output tokens per second on its Llama 4 Maverick 400B model — nearly 2.5 times faster than Nvidia’s comparable figure of 1,038 TPS.
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Continues to lead performance benchmarks on models such as DeepSeek and Qwen, regularly exceeding 2,500 TPS/user.
Cerebras’ innovations don’t stop at inference speed. The firm’s partnership with Ranovus in the joint U.S.-Canadian government contract seeks to revolutionize chip-to-chip communications — a critical bottleneck in AI hardware scalability.
What This Means for Investors and Users
For investors in AI hardware and technology, the incident is a cautionary tale about the importance of verifying information before acting — especially in areas as volatile as crypto. For general users, it’s a reminder that even blue-chip tech brands can have their online channels compromised.
Cerebras has reassured the public that no internal systems were affected by the social media hack, and operations continue as normal. The company’s credibility in AI hardware remains intact, strengthened by its quick and transparent handling of the situation.
Looking Ahead: Building Resilience Against Scams
The Cerebras fake cryptocurrency scam serves as a wake-up call not just for Cerebras, but for all tech companies and their stakeholders. Moving forward, the industry must double down on:
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Employee training on cybersecurity hygiene.
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Improved oversight of social media access.
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Collaboration with platform providers (e.g., X) for rapid incident response.
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Public education on spotting scams.
The speed of Cerebras’ response in this case provides a useful model, but as attacks grow more sophisticated, proactive measures will become even more crucial.
Conclusion
The hacking of Cerebras Systems’ X account to promote a fraudulent cryptocurrency scheme shines a light on the dual challenges of innovation and security. While the company’s rapid response prevented greater fallout, the event illustrates how cybercriminals exploit trust in high-profile brands. As Cerebras continues to break performance records in AI hardware, its experience with this scam will likely inform stronger protections — and offer lessons for the wider tech industry.
For more about Cerebras Systems and their work, visit Cerebras Systems.
Key Takeaways
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The Cerebras fake cryptocurrency scam involved a compromised social media account used to promote a fraudulent token.
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Cerebras acted quickly to regain control and deny involvement, minimizing damage.
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The incident highlights the growing need for stronger social media security in tech firms.
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