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AiXBT AI Agent Loses 55.5 ETH in Security Breach: Token Falls 20%

TLDR

  • AiXBT AI crypto agent was hacked, losing 55.50 ETH (approximately $104,000-$106,200)
  • Attacker accessed dashboard, queued malicious replies via a now-deleted “FungusMan” X account
  • The hack targeted AiXBT’s “Simulacrum wallet” which facilitates on-chain actions via social media
  • Following the hack, AIXBT token fell approximately 20% to $0.0938
  • Developer rxbt implemented security measures including server migration and new access keys

An AI-powered cryptocurrency market commentator known as AiXBT fell victim to a security breach on March 18, resulting in the theft of 55.50 ETH (Ethereum), worth approximately $105,000. The hack caused the platform’s token to drop by about 20% in value within 24 hours.

The attack took place at 2 AM UTC when an unknown hacker gained access to a secure dashboard for AiXBT Agent’s autonomous system. The perpetrator, operating under a now-deleted X (formerly Twitter) account called “FungusMan,” queued two malicious replies.

These malicious commands prompted the AI system to transfer funds from its Simulacrum wallet. This specialized wallet allows the platform to perform on-chain actions based on social media posts.

AiXBT’s developer, who goes by the pseudonym rxbt, confirmed the attack. The developer emphasized that the exploit did not compromise AiXBT’s core systems.

The team stressed that the breach was not due to any failure of the AI itself. They pointed out that safeguards had been in place to protect against agent manipulation.

In its own post about the incident, AiXBT acknowledged the exploit. “Simu wallet was cooked, but core systems unaffected,” the bot stated on X.

The AI agent attempted to reassure users and investors. “If you’re trading AIXBT, this doesn’t change fundamentals. Expect improved security after server migration,” the post continued.

The development team acted quickly following the breach. They reported the hacker’s wallet address to centralized exchanges to try to track the funds.

Additional security measures included switching access keys and migrating servers. The team also paused dashboard access while they implemented security upgrades.

AIXBT Token Falls

Despite these assurances from the team, the AIXBT token saw a sharp decline. The token, which trades on the Ethereum layer-2 network Base, fell by almost 20% to approximately $0.0938.

This latest drop continues a downward trend for the token. AIXBT is now trading nearly 90% below its all-time high of $0.94, which it reached on January 16 this year.

According to CoinGecko data, AiXBT’s market capitalization stands at $82.4 million at press time. This represents a substantial decline from its peak of $755 million in mid-January.

aixbt by VirtualsAIXBT Price
aixbt by Virtuals
AIXBT Price

AiXBT is built on the Virtuals Protocol and functions as a market commentator driven by an AI agent. The platform provides real-time insights on cryptocurrency trends.

Since its launch late last year, AiXBT has gained popularity in the crypto community. It has attracted a following of almost half a million people on X.

The incident has raised questions about the security of AI agents in crypto. Decentralized AI researcher known as “S4mmy” commented that AI agents managing crypto funds need more thorough testing.

The market for AI agent tokens has seen a broader decline in recent months. According to CoinGecko, the total market capitalization for AI agent tokens has fallen from nearly $17 billion in early January to below $5 billion currently.

Spencer Farrar, a partner at AI and crypto-focused venture capital firm Theory Ventures, described the current state of AI applications in crypto as “a bit frothy.” However, he suggested that more utility could develop over time.

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