Kaito AI, a platform utilizing artificial intelligence to provide crypto market analysis, and its founder, Yu Hu, were victims of a recent hack on their X social media account on March 15.
In posts that have since been removed, the hackers claimed that Kaito wallets were compromised and warned users that their funds were at risk. According to DeFi Warhol, the hackers allegedly initiated a short position on KAITO tokens before disseminating these messages. The aim was to trigger a sell-off, driving down the token’s price and generating profits for the hackers.
Following the incident, the Kaito AI team regained control of the accounts and reassured users that Kaito token wallets remained secure. “We had high-standard security measures in place to prevent [the hack] — so it seems to be similar or the same as other recent Twitter account hacks,” the Kaito AI team stated.
This recent security breach adds to the growing list of cybersecurity incidents plaguing the crypto industry, which includes social media hacks and social engineering scams.
Such exploitations aren’t isolated events. Pump.fun’s X account was hacked on February 26. The attackers promoted various fraudulent tokens, including a fake governance token for the fair launch platform called “Pump.” ZackXBT, an onchain sleuth, noted a direct link between the Pump.fun incident and the Jupiter DAO account hack, as well as the DogWifCoin X account compromise.
On March 7, the Alberta Securities Commission, a Canadian financial regulator, cautioned the public about malicious actors using fake news articles and endorsements featuring Canadian politicians to endorse a crypto scam. The misleading scam, known as CanCap, sought to exploit fears surrounding a potential trade war between Canada and the US, tricking unsuspecting investors into believing the project had backing from Canadian leader Justin Trudeau.
Crypto executives are also raising concerns about a new scam attributed to the Lazarus hacker group, which is linked to the state. In this scheme, hackers impersonate venture capitalists during Zoom meetings. Once a target is in the meeting, the hackers claim to have audio-visual issues and reroute the victim to a malicious chat room where they are prompted to download a patch that contains malicious software. This software is designed to steal crypto private keys and other sensitive information from the victim’s computer.
