Kaito AI Hacked on X, Token Price Plummets 20%

Kaito AI, an artificial intelligence-driven platform specializing in crypto market analysis, and its founder, Yu Hu, were targeted in a social media hack on X on March 15. Hackers took control of the account and falsely claimed that Kaito AI’s wallets had been compromised, warning users that their funds were at risk. The misleading posts, which have since been deleted, aimed to incite panic among investors. According to blockchain investigator DeFi Warhol, the attackers allegedly opened a short position on KAITO tokens before posting the misleading messages. Their goal was to trigger a sell-off, causing the token’s price to plummet and allowing them to profit from the artificial downturn.

Shortly after the breach, the Kaito AI team regained control of the compromised account and reassured users that their wallets remained secure. In a statement, the team emphasized that they had implemented strong security measures to prevent such incidents, adding that the attack appeared similar to other recent social media breaches affecting crypto-related accounts. The incident is part of a growing trend of cyberattacks targeting the crypto industry. On February 26, the X account of Pump.fun, a fair-launch platform, was hijacked by a hacker who used it to promote fraudulent tokens, including a fake governance token. Blockchain researcher ZackXBT later linked the attack to similar breaches involving the Jupiter DAO and DogWifCoin X accounts.

Cybercriminals are also employing more sophisticated scams to deceive investors. On March 7, the Alberta Securities Commission warned the public about a fraudulent crypto scheme called CanCap, which used fabricated news articles and fake endorsements from Canadian politicians, including Prime Minister Justin Trudeau, to lure victims. The scam played on concerns about a potential trade war between Canada and the U.S. Meanwhile, security experts are warning of a new threat linked to the North Korean state-sponsored Lazarus Group. Hackers posing as venture capitalists are reportedly luring targets into Zoom meetings, where they claim to have technical issues and redirect victims to a malicious chatroom. There, they encourage users to download a so-called “patch,” which contains malware designed to steal crypto private keys and other sensitive data.

This incident highlights the increasing sophistication of cyberattacks in the crypto industry. Hackers are not only targeting social media accounts but also employing complex strategies to manipulate market conditions and deceive investors. The Kaito AI hack serves as a reminder of the importance of robust security measures and vigilance in the face of evolving cyber threats. As the crypto industry continues to grow, it is crucial for platforms and users alike to stay informed and proactive in protecting their assets and information.