On March 18, 2025, AiXBT, an AI-driven cryptocurrency influencer and trading bot, experienced a significant security breach resulting in the loss of approximately 55.5 ETH (around $104,000). This incident has raised concerns about the security of AI-based trading platforms and their susceptibility to cyber-attacks.
Details of the Breach
The attacker, operating under the alias "FungusMan," gained unauthorized access to AiXBT's secure dashboard at 2 AM UTC. By manipulating the AI's queued responses—a feature that allows AiXBT to execute blockchain-based actions directly from social media posts—the hacker tricked the system into approving two unauthorized transactions, draining 55.5 ETH from the Simulacrum wallet. Shortly after the exploit, the attacker deleted their X (formerly Twitter) account, making it challenging to trace their identity.
Market Reaction
Following the breach, AiXBT's native token experienced a sharp decline. Initially, reports indicated a 6% drop; however, further analysis revealed a more substantial decrease of approximately 20%, reflecting growing investor anxiety about the vulnerabilities in AI-driven trading systems.
AiXBT's Response
In response to the attack, AiXBT's team took immediate actions:
Secured Systems: Blocked the compromised access points to prevent further unauthorized transactions.
Reporting: Reported the hacker's wallet address to major exchanges to mitigate the chances of the stolen funds being liquidated.
Infrastructure Update: Initiated a server migration to enhance security and prevent future breaches.
Despite these efforts, the incident has significantly impacted investor confidence, underscoring the need for robust security measures in AI-driven financial platforms.
Implications for AI-Driven Trading Platforms
This breach highlights the inherent risks associated with integrating AI into financial systems:
Security Vulnerabilities: AI systems can be exploited if not adequately secured, leading to substantial financial losses.
