AiXBT Security Breach: 55 ETH Stolen in AI Trading System Hack

AiXBT Security Breach- AiXBT Suffers Major Hack: 55 ETH Stolen, Token Drops

AiXBT Security Breach– A security breach on March 18 resulted in the theft of 55.50 ETH, worth approximately $104,000, from AiXBT, an AI-driven cryptocurrency market commentator platform. The attack, which targeted AiXBT’s autonomous trading system, has raised concerns about the vulnerabilities of AI-based financial platforms.

The breach occurred at 2 AM UTC when the hacker, operating under the deleted X account “FungusMan,” gained access to AiXBT’s secure dashboard. Using this access, the attacker manipulated the platform’s AI system, tricking it into approving two fraudulent transactions that drained 55 ETH from AiXBT’s Simulacrum wallet.

AiXBT’s core infrastructure remained secure, but the attack exploited weaknesses in its system, particularly the AI’s ability to execute blockchain transactions based on social media posts. While AiXBT developer rxbt confirmed the breach, they clarified that only the transaction system was compromised, not the AI itself.

AiXBT’s Efforts Fall Short: Token Selloff and Investor Concern

In response, AiXBT acted quickly, blocking the compromised access, reporting the hacker’s wallet to exchanges, and migrating servers to prevent further breaches. However, despite these efforts, the breach triggered a sharp 6.2% drop in the AiXBT Base token’s value, reflecting growing investor anxiety about AI-driven platforms.

At its peak in mid-January, AiXBT’s market cap reached $755 million, but the latest data from CoinGecko shows its valuation has since fallen to $82.5 million. The drop highlights ongoing concerns regarding the security risks of AI-managed crypto trading systems.

This incident has brought increased scrutiny to AI-powered trading platforms, especially those using blockchain-based automation. While AiXBT’s real-time market analysis and unique AI approach attracted a significant following, the breach underscores the importance of robust security measures in AI-driven financial systems. As AI plays a larger role in automated crypto trading, this attack serves as a cautionary tale about the risks of insufficient security in such platforms.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.