In an alarming incident, Kaito AI, a sophisticated platform leveraging artificial intelligence to deliver crypto market analysis, along with its founder Yu Hu, fell prey to a social media hack on March 15. The platform’s social media accounts, referred to as X, were compromised by unidentified threat actors.
The hackers were bold enough to assert that Kaito’s wallets were breached and gave out a warning that users’ funds were in jeopardy. These posts have since been deleted. DeFi Warhol, a crypto enthusiast, analyzed that the motive behind this cyber crime was to manipulate KAITO tokens’ market value. The hackers opened a short position on these tokens and attempted to incite panic among users. They hoped that the users would withdraw or sell their funds, causing a price drop and thus, filling the hackers’ pockets.
However, the Kaito AI team managed to regain control over the hacked accounts. They assured their users that the Kaito token wallets remained safe and were not affected by this social media hack. “Our security measures are of the highest standard and were designed to avert such cyber attacks. It appears that this hack is similar to other recent Twitter account breaches,” the Kaito AI team elaborated.
This incident is another addition to the increasing number of social media hacks, social engineering scams, and cybersecurity issues that the crypto industry is currently facing. In a similar event, Pump.fun’s X account was also compromised on Feb. 26 by cybercriminals promoting counterfeit tokens.
Moreover, the Alberta Securities Commission, a financial regulatory body in Canada, recently issued a warning about a crypto scam named CanCap. The scammers used fake news articles and endorsements, featuring Canadian politicians, to attract victims. Crypto executives are also alerting about a new scam by the state-sponsored Lazarus hacker group where the hackers pretend to be venture capitalists on a Zoom call.
