Kaito AI, an artificial intelligence-powered platform that aggregates crypto data to provide market analysis for users, and its founder Yu Hu, were the victims of an X social media hack on March 15.
In several now-deleted posts, hackers claimed that the Kaito wallets were compromised and advised users that their funds were not safe.
According to DeFi Warhol, the hackers opened up a short position on KAITO tokens before posting the messages in the hopes that users would sell or pull their funds, which would have crashed the price and created profits for the threat actors.
The price of the KAITO token dips, presumably due to a short position. Source: CoinMarketCap
The Kaito AI team regained access to the accounts and reassured users that Kaito token wallets were not compromised in the social media exploit.
“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 added.
This recent exploit is the latest in a growing list of social media hacks, social engineering scams, and cybersecurity incidents plaguing the crypto industry.
Source: Kaito AI
Related: Kaito AI token defies influencer selling pressure with 50% price rally
Vigilance is key: some of the latest scams and exploits to impact crypto
Pump.fun’s X account was hacked on Feb. 26 by a threat actor promoting several fake tokens, including a fraudulent governance token for the fair launch platform called “Pump.”
According to onchain sleuth ZackXBT, the Pump.fun incident was directly connected to the Jupiter DAO account hack and the DogWifCoin X account compromise.
On March 7, The Alberta Securities Commission, a Canadian financial regulator, warned the public that malicious actors were using fake news articles and fake endorsements featuring the likeness of Canadian politicians to promote a crypto scam.
The scam, known as CanCap, played on fears of a trade war between Canada and the US to lure unsuspecting victims into investing in the project, which the scammers claimed had the support of Canadian leader Justin Trudeau.
An example of a Lazarus social engineering scam where the hackers pretend to be venture capitalists experiencing audio-visual issues. Source: Nick Bax
Crypto executives are also sounding the alarm on a new scam from the state-sponsored Lazarus hacker group, where the hackers pose as venture capitalists in a Zoom meeting.
Once the target is in the meeting room, the hackers would claim they were experiencing audio-visual issues and redirect the victim to a malicious chat room where the user is encouraged to download a patch.
The patch contains malicious software designed to steal crypto private keys and other sensitive information from the victim’s computer.
Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis