Kaito AI Founder Suffers X Account Hack in Coordinated Crypto Market Manipulation Attempt
| Key Points: – The official X account of Kaito AI founder Yu Hu was compromised on March 15, spreading false claims that Kaito wallets were breached. – Hackers allegedly shorted KAITO tokens before posting misleading information to trigger panic selling and profit from the price drop. |
Kaito AI, an artificial intelligence-powered platform specializing in crypto market analysis, fell victim to a social media hack on March 15.
The attack targeted both the official X account of Kaito AI founder, Yu Hu and the platform leading to the spread of false information regarding the platform’s security.
Kaito AI Founder’s X Accounts Hacked in Cyber Attack
The hackers exploited the compromised accounts to post misleading claims that Kaito wallets had been breached, warning users that their funds were at risk. These posts, which have since been deleted, triggered market panic, causing the KAITO token to drop over 13% before stabilizing on Saturday. The token is now trading around $1.4 at the time of writing with trading volume surging over 80% in the past 24 hours.
According to DeFi Warhol, an analyst in the decentralized finance sector, the attackers likely opened short positions on KAITO tokens before disseminating the misleading messages. The objective was to induce a sell-off, drive down the token’s price, and profit from the resulting market disruption.
In response to the incident, Kaito AI confirmed that the breach was limited to the X accounts and did not affect any cryptocurrency wallets or the platform’s infrastructure. Kaito AI founder reassured users, stating,
“Nothing related to KAITO was compromised, no wallets or supply. My X account and the Kaito one were both compromised – with the hacker then posting false tweets.”
Crypto Industry Faces Rising Wave of Cyber Threats
Sandra Leow, a research partner at Kaito, noted that the hackers strategically timed the attack during Yu Hu’s inactive hours, further indicating a calculated effort to maximize market impact. The Kaito AI team has since regained control of the accounts and reaffirmed that the platform remains secure.
The breach is part of a broader trend of cyber threats targeting the cryptocurrency industry. Social media hacks, phishing scams, and other cybersecurity breaches have become increasingly common, leading to significant financial losses.
In February alone, crypto-related exploits and scams accounted for approximately $1.53 billion in losses, according to blockchain security firm CertiK. The report highlighted the $1.4 billion Bybit hack as the largest single incident, attributed to North Korea’s Lazarus Group.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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