- Hackers took over Kaito AI’s X account and posted false wallet warnings to cause panic and profit from token price drops.
- The attack on Kaito AI follows recent hacks on Pump.fun and Jupiter DAO showing a trend of social media exploits in crypto.
- Kaito AI assured users that wallets were safe and blockchain data showed no large movement of KAITO tokens after the hack.
Kaito AI, an artificial intelligence platform for crypto market analysis, and its founder Yu Hu were targeted in a social media hack on March 15. Hackers took control of their X accounts and posted misleading claims about Kaito wallets being compromised.
The attackers posted messages warning users that their funds were not safe. DeFi Warhol, an on-chain analyst, suggested that the hackers had opened short positions on KAITO tokens before making the posts. Their goal was to trigger panic selling, leading to a price drop and potential profits for the attackers.
Pump.fun and Jupiter DAO Among Previous X Account Hacks
The incident follows a series of similar hacks targeting crypto-related X accounts. Pump.fun’s X account was compromised on February 26. The attackers promoted fraudulent tokens, including a fake governance token called “Pump.”
According to blockchain investigator ZackXBT, the Pump.fun hack was linked to the compromise of Jupiter DAO and DogWifCoin’s X accounts. The coordinated attacks suggest an ongoing effort by malicious actors to exploit social media influence in the crypto space.
Political Endorsements Used in Crypto Scam
On March 7, the Alberta Securities Commission issued a warning about a crypto scam known as CanCap. Fraudsters used fake news articles and fabricated endorsements featuring Canadian politicians to promote the scheme.
The scammers exploited fears of a trade war between Canada and the US to attract investors. They falsely claimed that Canadian Prime Minister Justin Trudeau supported the project. Authorities urged the public to remain cautious and verify investment opportunities before committing funds.
KAITO Token Recovers After Initial Dip
Following the hack, Kaito’s native token dropped nearly 10% before recovering. The misleading posts on X had briefly created panic in the market. The Kaito team reassured investors that the wallets remained secure and an investigation was underway.
Blockchain data showed no significant movement of Kaito tokens after the hack. The team acknowledged the security breach and stated that it was similar to previous social media account compromises in the industry. Kaito AI continues to monitor the situation and plans to implement additional security measures to prevent future incidents.
