Hackers Target Kaito AI with False Claims of Wallet Compromise
On March 15, 2025, Kaito AI, an artificial intelligence-powered platform for crypto market analysis, and its founder, Yu, experienced a social media hack on X (formerly Twitter). The attackers managed to take control of the account and falsely declared that Kaito AI’s wallets had been compromised, creating panic among users about the safety of their funds.
Defi Warhol, a blockchain investigator, revealed that the hackers also initiated a short position on Kaito tokens prior to disseminating the misleading alerts. Their primary objective seemed to be manipulating the token’s value downward to profit from the artificial decline.
Despite the breach, Kaito AI’s team swiftly regained control of the hacked account and reassured users that their wallets were secure. They emphasized the implementation of stringent security measures to prevent similar incidents in the future, highlighting the resemblance of this attack to recent breaches targeting crypto-related accounts.
In an official statement, the company stated, “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.”
The surge in cyberattacks has resulted in a significant rise in losses within the crypto space. According to a report by Immunefi, a blockchain security platform, losses in February 2025 were 20 times higher than in January 2025, with a notable increase in scams targeting investors.
