Cerebras Systems, the world’s largest AI chipmaker, became the latest high-profile victim in a growing wave of crypto-related cyber scams. The company confirmed its official X (formerly Twitter) account was compromised and used to promote a fake cryptocurrency called $CEREBRAS, which it says is entirely fraudulent.
The breach, which took place shortly after June 15, raised immediate suspicion among cryptocurrency observers, who flagged the newly launched token as a potential scam or “rug pull,” a scheme where promoters hype a coin, take investor funds, and then abandon the project.
Executives Sound the Alarm: ‘It’s a Scam’
Speculation turned to confirmation when company leadership spoke out directly on the platform. Cerebras CEO Andrew Feldman responded to a user’s query with a blunt denial: “No. We did not. This is a scam.” His message was echoed by James Wang, Director at Cerebras, who wrote, “Cerebras is not launching a token. It’s a scam. Do not click.”
The company has since regained control of its X account, assuring followers that there has been no recent suspicious activity. “Please be aware: Cerebras does not, and will never, launch or endorse any cryptocurrency or token,” the company posted. “We are working to regain control of the account. Stay alert and protect yourself from scams.”
Red Flags Surfaced Early
The fake token’s sudden appearance and lack of formal communication from Cerebras sparked immediate scepticism within the tech and crypto communities. The coin, which emerged online around June 15, was not accompanied by any official whitepaper, roadmap, or endorsement, all of which are typically expected in a legitimate token launch.
Security analysts and crypto watchdogs were quick to note that the coin bore all the hallmarks of a rug pull, especially as it sought to piggyback off Cerebras’ real-world reputation in the artificial intelligence space.
Cerebras: At the Forefront of AI, Not Crypto
Founded in 2016, Cerebras Systems is best known for developing the Wafer Scale Engine (WSE), the largest chip ever built, tailored for AI model training and inference. The company has become a powerful force in AI infrastructure, frequently positioning itself as a next-generation alternative to industry giants like Nvidia.
Despite the crypto setback, Cerebras continues to make headlines for its performance achievements. Most recently, it boasted record-breaking inference speeds using Meta’s Llama 4 Maverick 400B model, reaching 2,522 output tokens per second, more than double Nvidia’s benchmark of 1,038 TPS.
“Cerebras has led the charge in redefining inference performance across models like Llama, DeepSeek, and Qwen, regularly delivering over 2,500 TPS/user,” said Feldman.
A $45M Contract Win and Strategic Momentum
Far from distracted by the security breach, Cerebras is also pushing forward with major developments. The company recently secured a $45 million joint contract with Canadian chip startup Ranovus. The agreement, backed by the U.S. Department of Energy, focuses on accelerating inter-chip connections to power future large-scale AI systems.
This contract underscores Cerebras’ ongoing collaboration with the U.S. military and federal government, reflecting growing interest in building sovereign AI infrastructure resilient to global chip supply disruptions.
Scam Reflects Broader Risks in Tech-Driven Markets
The Cerebras incident highlights a troubling trend: as tech companies gain visibility and influence, they increasingly become targets for cybercriminals seeking to exploit their name for fraudulent gain. The $CEREBRAS token scam is part of a wider pattern where hackers hijack social media accounts of credible brands to push bogus investment schemes.
Cybersecurity experts are urging companies to double down on two-factor authentication and internal alert systems to detect suspicious account activity. For consumers, the lesson is equally urgent: if it sounds too good to be true, especially in crypto, it probably is.
As for Cerebras, the company has reaffirmed its core mission remains focused on AI hardware innovation, not digital currencies.
“We’re committed to advancing the frontiers of AI,” Feldman emphasised, “and we want to remind everyone to stay vigilant online.”
