AiXBT Token Drops 20% After 55.5 ETH Hack

In a significant security breach, the popular AI bot and influencer AiXBT was compromised, resulting in the loss of 55.5 ETH, valued at approximately $105,000 at the current Ethereum price. The incident involved a malicious actor who exploited the bot's autonomous response system by queuing harmful replies through a since-deleted X (formerly Twitter) account named FungusMan. This exploit allowed the hacker to generate a tip of 55.5 ETH from AiXBT’s Simulacrum wallet, which facilitates on-chain actions via social media posts.

The hacker managed to access a secure dashboard for AiXBT Agent’s autonomous system at 2am UTC, queuing two malicious replies that led to the theft of 55 ETH. The bot’s pseudonymous developer, RXBT, clarified that the breach was not due to agent manipulation, as strong safeguards had been implemented over the past months. In response to the incident, RXBT has taken additional security measures, including migrating servers and swapping access keys, and has reported the hacker’s address to centralized exchanges.

Despite assurances from the bot that the security incident does not alter the fundamentals of AiXBT, the token experienced a 20% drop in value over the last 24 hours, falling to $0.097. This decline continues a downward trend for the token, which is now nearly 90% off its all-time high of $0.94 achieved on January 16. The broader market for AI-related tokens in the crypto space has also seen a significant slump, with the market cap for AI agent tokens decreasing from nearly $17 billion in early January to below $5 billion.

The incident highlights the vulnerabilities in AI-driven systems and the importance of robust security measures. The swift decline in AiXBT’s token value underscores the market’s sensitivity to security breaches and the potential impact on investor confidence. As the AI and crypto sectors continue to evolve, ensuring the security of autonomous systems and protecting user funds will be crucial for maintaining trust and stability in the market.