AI-Powered Token AiXBT Drops 20% After AI Influencer's Account Hacked, Losing $100K in Ethereum
A major security incident has hit the popular AI bot AiXBT, causing it to lose over $100,000 in Ethereum. Since the incident, the value of the platform's token has plummeted.
The AiXBT automated AI bot, which has been making headlines in the crypto world, has just been the victim of a major hack that has seen it lose 55.5 ETH, or around $105,000. The incident has sent AiXBT's Base network token plummeting by nearly 20% in just the past 24 hours, falling to a price of $0.097.
The hack was carried out by an anonymous account called FungusMan, who exploited the automated feature of AiXBT's AI reply system to commit fraud. FungusMan exploited the malicious replies in the bot’s reply system and siphoned off ETH from AiXBT’s Simulacrum wallet.
Attack Method
News of the incident came to light after AiXBT responded to a post from FungusMan, using the Simulacrum wallet’s automated tipping feature to send 55.5 ETH over the Ethereum layer-2 Base network to the attacker’s address. Simulacrum is a smart wallet that allows users to send funds based on social media actions, one of the bot’s unique features.
AiXBT’s anonymous developer RXBT confirmed the incident occurred at 2am UTC, when the hacker accessed the system’s security dashboard and posted two malicious replies that caused the ETH to be transferred.
Remediation
RXBT soon announced additional security measures such as server migration and changing access keys. The hacker's wallet address has also been reported to centralized exchanges to prevent the sale of the stolen assets.
RXBT reassured the community that the attack only affected the Simulacrum wallet and that AiXBT's other core systems remain secure. "We have implemented robust security measures over the past months, and this incident does not impact the fundamentals of AiXBT. Please expect improved security after the server migration."
Impact on AiXBT Token Value
Despite the team's efforts to reassure, the AIXBT token has not been able to avoid a sharp decline, falling around 20% in 24 hours. The token had reached an all-time high of $0.94 in mid-January but is now down nearly 90% from that level.
The AiXBT token’s decline is also part of a general downward trend for AI-related tokens in the crypto space. Once valued at nearly $17 billion at the start of the year, the market capitalization of AI tokens has fallen to less than $5 billion, according to data from CoinGecko.
As of press time, AiXBT’s developers have yet to comment in detail on the security incident.