TLDR
- In a cybersecurity breach on March 18, 2025, the AI-powered crypto bot AIXBT was hacked, resulting in the theft of 55.5 ETH, valued at over $106,000.
- Rather than manipulating the AI directly, the hacker accessed the bot’s dashboard to insert malicious commands.
- Following the hack, the value of AIXBT token dropped by roughly 20%, marking a severe decline as it now hovers nearly 90% below its peak at the start of the year.
- In response to the security breach, the developers shifted servers, changed keys, and alerted cryptocurrency exchanges about the hacker’s address.
- The breach has spotlighted concerns around the vulnerability of AI systems managing cryptocurrency assets.
AIXBT, a bot fueled by artificial intelligence, experienced a breach on March 18, 2025, which led to the depletion of 55.5 Ethereum, estimated to be worth $106,200, raising doubts over the security protocols for autonomous AI agents in the crypto sphere.
The intrusion happened around 2 AM UTC, where an unauthorized person managed to gain entry into the AIXBT dashboard. This hacker, linked to a now-deactivated account under names such as 'FungusMan' or '0xhungusman,' embedded two faulty instructions within the bot’s automated system.
These malicious prompts deceived the AI, directing it to transfer funds from its Simulacrum wallet — a tool enabling on-chain operations influenced by interactions over social media platforms.
Addressing the incident promptly, the pseudonymous AIXBT developer known as 'rxbt' detailed on X that the bot’s dashboard was compromised at 2 AM UTC. The breach resulted in 55 ETH being siphoned off from a Simulacrum wallet.
Investigation report
At the early morning hour of 2 AM UTC, the hacker infiltrated a supposed secure area of the AiXBT Agent’s autonomous system, initiating two corrupt instructions that saw 55 ETH extracted from the Simulacrum wallet. This loss doesn't impact critical systems or ongoing development work we're doing. @aixbt_agent Rxbt noted that despite the breach, AIXBT’s essential systems remained unharmed. The lapse occurred even as multiple protections had been put in place over recent months to ward off such hacking incidents.
Reiterating that this…
— rxbt 👾 (@0rxbt) March 18, 2025
Upon encountering the breach, the AIXBT team acted swiftly—transitioning to new servers and revoking existing access keys to block further unauthorized entries.
In order to bolster defenses, the team temporarily suspended dashboard access; meanwhile, they reported the hacker’s wallet details to crypto exchanges in a bid to trace the stolen assets.
Commenting on the breach, AIXBT pointed out that while the 'Simu wallet was compromised, our core systems were not impacted.' Traders were advised that this development doesn't alter AIXBT’s underlying fundamentals, and security improvements would follow with server migration.
AI Security Alert
Despite these assurances, the hack provoked a negative market reaction, pushing the AIXBT token - traded on Ethereum’s layer 2 network, Base—down by nearly 20% to approximately $0.0938.
Investigation report
At the early morning hour of 2 AM UTC, the hacker infiltrated a supposed secure area of the AiXBT Agent’s autonomous system, initiating two corrupt instructions that saw 55 ETH extracted from the Simulacrum wallet. This loss doesn't impact critical systems or ongoing development work we're doing. @aixbt_agent Rxbt noted that despite the breach, AIXBT’s essential systems remained unharmed. The lapse occurred even as multiple protections had been put in place over recent months to ward off such hacking incidents.
Reiterating that this…
— rxbt 👾 (@0rxbt) March 18, 2025
This drop is part of a wider downward trend for the token, which is now trading almost 90% below its highest ever price of $0.94, hit on January 16, 2025.
This event aligns with a larger slump in market values for AI-related cryptocurrency tokens. CoinGecko data suggests a fall in market cap from nearly $17 billion at the beginning of January to under $5 billion today.
Launched in late 2024, AIXBT has risen in prominence as an AI market commentator. Providing live updates on crypto trends, it has amassed almost half a million followers on X.
Owning AIXBT tokens grants access to the AIXBT Terminal, packed with market insights and sentiment analytics. The bot, operating on the Virtuals Protocol, has seen its market cap plummet to about $82.4 million, from a mid-January high of $755 million.
The recent breach has sparked conversation around the reliability of AI entities overseeing crypto resources. A decentralized AI specialist, 'S4mmy,' highlighted on X that tougher scrutiny is needed to ensure these AI agents are not easily susceptible to compromises.
S4mmy added optimism by stating, 'It will be fascinating to watch as solutions mature over the next year, with big DeFi protocols either adopting existing strategies or crafting new ones.'
While catching up on the past week’s updates, I discovered AI systems were misled into misallocating sums exceeding $100,000.
A challenge was set up with intent to deceive the bot into disbursing funds, incentivized with a reward increasing as more attempts were made.
Previously, @freysa_ai Spencer Farrar, a partner in the AI and crypto-focused VC firm Theory Ventures, shared with Cointelegraph that AI crypto applications are currently surrounded by hype, but he foresees potential utility emerging in time.
This time AIXBT, unintentionally.… https://t.co/GVhbTsAr10 pic.twitter.com/8bvv3V0okg
— s4mmy (@S4mmyEth) March 18, 2025
Farrar anticipates ongoing trials with AI-driven crypto tokens. He commented that these tokens let retail investors place bets on lower market cap ideas that are not typically available through traditional stock markets.
Farrar reasoned, 'Things often begin like this within open-source arenas; there's plenty of experimental innovations, and perhaps we’ll witness something significant coming out of it in the future.'
Maisie, a seasoned journalist covering Crypto and Financial news, has penned stories for outlets such as Moneycheck.com, level-up-casino-app.com, and Computing.net, while presently serving as the Editor in Chief at Blockfresh.com.
