- Kaito AI and Yu Hu’s X accounts were hacked on March 15 to spread false claims.
- Hackers aimed to crash KAITO’s price by spreading panic among investors.
Kaito AI and its founder, Yu Hu, faced a cyberattack on March 15, as their X social media accounts were hacked. Hackers used the breach to spread false claims about issues with KAITO token wallets, causing the token price to drop by nearly 10% before rebounding.
Hackers posted misleading warnings about compromised KAITO wallets, urging users to secure their funds. The goal was to trigger panic selling, which would have lowered the token’s price for financial gain. Blockchain investigator DeFi Warhol reported that the attackers had opened short positions on KAITO before making the false claims.
The Kaito AI team quickly regained control of the accounts. They reassured users that the platform’s wallets remained secure despite the social media breach.
Kaito AI’s Response and Investigation
Yu Hu confirmed the recovery of his X account. He reiterated that KAITO wallets were safe and said the team investigated how the hack occurred. Kaito AI’s official account also addressed the incident, stating that the exploit resembled recent X account hacks.
Sandra Leow, a research partner at Kaito, noted that the attackers deliberately acted while Yu Hu was asleep. This tactic is commonly used to delay response times from victims and security teams.
The Kaito AI hack is the latest in a series of cyberattacks targeting social media accounts in the crypto space. On February 26, hackers took over Pump. fun’s X account to promote fake tokens. The attack linked to earlier breaches of Jupiter DAO and DogWifCoin accounts.
Another recent scam involved the Lazarus Group, a state-sponsored hacking organization. The group posed as venture capitalists in Zoom meetings to distribute malware, stealing crypto wallet keys from unsuspecting victims.
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