The official X account of Kaito AI, a crypto-focused artificial intelligence platform, was compromised on March 15, with hackers using the breach to spread false information about the security of Kaito wallets. The malicious actors falsely claimed that Kaito wallets had been compromised, urging users to sell their holdings or withdraw funds, a strategy designed to create panic in the market.
According to blockchain investigator DeFi Warhol, the attackers opened short positions on KAITO tokens before making the false claims, intending to crash the price and profit from the decline. This form of market manipulation has become increasingly common in the crypto industry, where bad actors leverage social media exploits to trigger mass sell-offs.
Following the breach, the Kaito AI team swiftly regained control of their account and reassured users that no wallets had been compromised. In an official statement, the team said:
“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.”
Rising Wave of X Account Hack Cases
The Kaito AI hack is just the latest in a string of high-profile social media breaches targeting crypto projects, influencers, and even public figures. Attackers frequently exploit social engineering tactics to gain access to accounts and manipulate market sentiment.
On February 26, the X account of Pump.fun, a fair-launch token platform, was hijacked by a hacker promoting fraudulent tokens, including a fake governance token named “Pump.” Blockchain investigator ZackXBT later linked this attack to the Jupiter DAO and DogWifCoin X account compromises, suggesting an organized campaign targeting crypto-related profiles.
Even celebrities have fallen victim to these tactics. In January, Dean Norris had his X account hacked to promote a scam memecoin called DEAN.
Fake News and Phishing Scams
Beyond direct account takeovers, scammers are now resorting to fake news campaigns to lure victims. On March 7, the Alberta Securities Commission warned the public about a crypto scam called CanCap, which used fake endorsements from Canadian politicians, including Prime Minister Justin Trudeau, to mislead investors.
With social media becoming a battleground for crypto fraud, industry players and investors are urged to exercise extreme caution, double-check announcements, and verify sources before reacting to market-moving news.
The post Kaito AI Loses Control of X Account in Coordinated Crypto Attack appeared first on TheCoinrise.com.
TheCoinrise.com – Read More