Cryptocurrency Swindle: AiXBT Representative Transfers 55.50 ETH to Malicious Address, Token Drops 20%

AiXBT, a widely used AI-powered commentator in the crypto market, was targeted by a security breach on March 18, leading to a loss of 55.50 ETH, which is equivalent to around $104,000.

The attacker managed to deceive AiXBT's AI agent into making the transfer by gaining access to the autonomous system dashboard and scheduling harmful responses. The funds were transferred from AiXBT's Simulacrum wallet, a system that enables on-chain actions through social media posts. The hacker operated under a now-deleted X account named "FungusMan."

$AIXBT AI agent system compromised: 55 ETH ($104k) stolen through dashboard access hack

attacker scheduled harmful responses

main systems unaffected.

AiXBT's pseudonymous developer, rxbt, verified the attack, stating that at 2 AM UTC, an attacker had gained access to a secure dashboard for AiXBT Agent's autonomous system. The attacker then scheduled two harmful responses that resulted in 55 ETH being taken from a Simulacrum wallet.

He emphasized that the exploit did not affect AiXBT's core systems and was not a failure of the AI itself, as safeguards had been in place.

In response to rxbt's post, AiXBT acknowledged the exploit, stating, "Simu wallet was compromised, but main systems are unaffected. If you're trading AIXBT, this doesn't change fundamentals. Expect enhanced security after server migration."

The team acted promptly after the breach, reporting the hacker's address to centralized exchanges, changing access keys, and migrating servers. Despite these assurances, AiXBT's Base token experienced a significant drop, falling almost 20% in 24 hours to $0.0938. AiXBT's market cap is $82.4m at press time, down from the $755 million peak in mid-January, according to CoinGecko data.

The incident has raised concerns about potential security vulnerabilities in AI-driven trading platforms, although the financial loss represents only a small fraction of AiXBT's market capitalization.

Powered by the Virtuals Protocol (VIRTUAL), AIXBT is a market commentator driven by an AI agent. Its real-time insights on cryptocurrency trends have contributed to its popularity since its launch late last year, attracting a following of nearly half a million people on X. Possessing AiXBT tokens grants traders access to the AiXBT Terminal, which provides market data and sentiment analysis.