
Kaito AI, a crypto-focused artificial intelligence platform, and its founder, Yu Hu, fell victim to a coordinated cyberattack on March 15. The breach marks an escalation in social media hacking tactics, deviating from traditional scams that promote fraudulent tokens.
Hackers took control of the X accounts associated with Kaito AI and Yu Hu, posting misleading messages that falsely claimed Kaito wallets had been compromised. The attackers urged users to withdraw funds, hoping to trigger panic selling.
Market Manipulation Attempt Through KAITO Token Shorting
According to blockchain investigator DeFi Warhol, the attackers strategically opened short positions on KAITO tokens before disseminating the false information. This indicates a calculated effort to drive down the token’s price, enabling them to profit from the resulting market crash.
The Kaito AI team has since regained control of the affected accounts, reassuring users that Kaito token wallets were not compromised in the attack. The company emphasized that its security measures were robust, suggesting the exploit aligns with other recent high-profile X account breaches.
Growing Cyber Threats in the Crypto Industry
This incident underscores the increasing frequency and sophistication of cyber threats targeting the crypto space. In recent weeks, multiple social media hacks and social engineering scams have shaken the industry:
- Pump.fun X Account Breach (Feb. 26): Hackers infiltrated the fair launch platform’s X account to promote fraudulent tokens, including a fake governance token named “Pump.” Blockchain analyst ZackXBT linked the attack to previous breaches involving Jupiter DAO and DogWifCoin.
- Canadian Regulator’s Warning (March 7): The Alberta Securities Commission cautioned the public about a crypto scam, CanCap, which used deepfake news articles and counterfeit endorsements from Canadian politicians—such as Prime Minister Justin Trudeau—to attract victims.
- State-Sponsored Lazarus Group’s Zoom Scam: The North Korean hacker group has been impersonating venture capitalists in Zoom meetings, luring targets into downloading malicious software. Once installed, the malware extracts private keys and other sensitive data from the victim’s device.
As cybercriminals refine their tactics, crypto users and organizations must remain vigilant against evolving threats. Enhanced security measures and heightened awareness are crucial to mitigating the risks posed by these increasingly sophisticated exploits.