Kaito AI and Its Founder Yu Hu Fall Victim to a Coordinated Cyberattack

The breach marks an escalation in social media hacking tactics, deviating from traditional scams that promote fraudulent tokens.

Crypto-focused artificial intelligence platform Kaito AI, and its founder Yu Hu, were the latest victims of a coordinated cyberattack on March 15. The breach saw hackers take control of the X accounts associated with Kaito AI and Yu Hu, posting misleading messages that falsely claimed Kaito wallets had been compromised.

The hackers then urged users to withdraw funds in an attempt to trigger panic selling.

According to blockchain investigator DeFi Warhol, the hackers also strategically opened short positions on KAITO tokens prior to the hack. This suggests a calculated move to devalue the token and benefit from the market crash.

This morning, hackers gained access to Kaito AI's X account and posted messages claiming that Kaito token wallets had been compromised. They urged users to withdraw their funds.

However, Kaito AI's security measures were not exploited in this attack. The company's X account and Hu's personal X account have since been recovered.

The company assured users that its token wallets were not compromised in the attack, adding that its security measures were robust and that the exploit likely aligns with other recent high-profile X account breaches.

"Our X account was hacked this morning. We are working to regain full access and apologize for any inconvenience caused by the fraudulent messages posted by the hackers," Kaito AI announced.

"We want to assure our community that our token wallets were not compromised in this attack. Our security measures are in place, and we are handling the situation with urgency."

The incident highlights the escalating threat of cyberattacks in the crypto industry. In recent weeks, several social media hacks and social engineering scams have shaken the crypto sphere.

Earlier this month, hackers took over the X accounts of several prominent crypto figures, including DeFi researcher DeFiChains and crypto trader Anish Aggarwal, to promote a fraudulent token scam.

These scams saw hackers post messages that falsely claimed the individuals were leaving their current roles to join a new project and encouraged users to invest in a new token.

As cybercriminals continue to refine their tactics, crypto users and organizations must remain vigilant against these evolving threats. Enhanced security measures and heightened awareness are key to mitigating the risks posed by these increasingly sophisticated exploits.