**AiXBT, an AI Crypto Instrument, Suffers a Breach, Resulting in a $104,000 ETH Loss**
On March 18, AiXBT, a well-known AI-based crypto market analyst, experienced a security compromise that resulted in the loss of 55.50 ETH, or approximately $104,000.
The attacker gained access to AiXBT’s independent system dashboard and created harmful responses that tricked the AI agent into starting unauthorized transfers. The funds were taken from AiXBT’s “Simulacrum” wallet, a system designed to carry out on-chain actions based on social media posts. The hack was carried out using an X account called “FungusMan” that has since been removed.
Rxbt, the anonymous developer of AiXBT, verified the attack and stated that the hacker had gained access to the autonomous system’s security dashboard at around 2:00 AM UTC. The hacker then used this access to schedule two harmful responses, which resulted in the ETH being withdrawn.
Rxbt emphasized that the core systems of AiXBT were not compromised by the breach and that the AI itself was not at fault because security measures were in place.
AiXBT responded to rxbt’s post by acknowledging the breach and stating that “Simu wallet was compromised, but the core system is unaffected. If you’re trading AIXBT, this doesn’t change the fundamentals. After the server migration, expect better security.”
The team responded quickly after the breach by reporting the hacker’s address to centralized exchanges, rotating access keys, and moving servers. Despite these assurances, AiXBT’s Base token fell significantly, falling by almost 20% in 24 hours to $0.0938. AiXBT’s market cap is currently $82.4 million, down from its high of $755 million in mid-January, according to CoinGecko.
Even though the financial loss is only a small portion of AiXBT’s market cap, the incident has sparked concerns about security flaws in AI-powered trading platforms. Propelled by CZ’s Endorsement, BNB Chain’s Emerging Meme Token MUBARAK Skyrockets Beyond 100% in a Week
AiXBT, which is based on the Virtuals protocol (VIRTUAL), is a market commentator driven by an AI agent.
Following its introduction late the previous year, it has become well-known for its aptitude to examine cryptocurrency patterns instantly, accumulating almost 500,000 adherents on X. Dealers possessing AiXBT tokens are able to enter the AiXBT hub, which furnishes marketplace figures and sensation assessment. I believe it is a truly encouraging undertaking.
