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On March 15, 2025, Kaito AI, a prominent artificial intelligence-powered platform for crypto market analysis, fell victim to a sophisticated social media hack. The attackers gained control of Kaito AI’s X (formerly Twitter) account and falsely claimed that the platform’s wallets had been compromised, warning users that their funds were at risk.
Details of the Hack
According to blockchain investigator Defi Warhol, the hackers not only spread false information but also opened a short position on Kaito tokens before posting the alerts. Their apparent goal was to manipulate the token’s price downward, allowing them to profit from the artificial decline.
Response from Kaito AI
Kaito AI’s team quickly regained control of the compromised account and reassured users that their wallets remained secure. The company emphasized that robust security measures were already in place and that the attack seemed similar to other recent breaches targeting crypto-related accounts.
In a statement, Kaito AI noted:
“This account and @Punk9277 were just compromised. The KAITO wallets were NOT and are NOT compromised. We now have regained access to the Twitter accounts. Please bear with us as we investigate how this happened. We had high-standard security measures in place to prevent it – so it seems to be similar or the same to other recent Twitter account hacks. We’ll update as soon as we can. To reiterate – KAITO token wallets have not been compromised.”
Broader Impact on the Crypto Ecosystem
The rise in such cyberattacks has led to significant losses within the crypto ecosystem. A report by blockchain security platform Immunefi revealed that losses in February 2025 were 20 times higher than in January 2025, with a sharp increase in scams targeting investors. This trend highlights the growing threat of cyberattacks in the cryptocurrency space and the need for enhanced security measures.
Conclusion
The hacking incident targeting Kaito AI serves as a reminder of the ongoing risks in the cryptocurrency sector. As the crypto landscape continues to evolve, it is crucial for platforms and users alike to remain vigilant and implement robust security protocols to protect against such threats. The swift response by Kaito AI in regaining control and reassuring users demonstrates the importance of preparedness and transparency in maintaining trust within the community.
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