The cryptocurrency network AiXBT was recently the target of a scam in which one of its agents transferred 55.50 ETH, which at the time was valued over $100,000, to a hostile account.
The scammer deceived the AiXBT agent into sending the Ethereum tokens as part of a broader phishing attempt.
The price of AiXBT’s native token fell 20% after the attack, indicating that investors had lost faith in the company. The hack demonstrates the weaknesses in the crypto sector, particularly with regard to phishing and human mistake.
AiXBT Takes Further Steps After Hack
To track down the stolen money and protect its network from future attacks, AiXBT is now collaborating with blockchain forensics and security specialists.
Concerns over the security of decentralized finance systems have been highlighted by the incident, which has prompted calls for stronger security measures to guard against future attacks of this nature.
In order to prevent more harm, AiXBT’s team moved quickly after the incident, changing access keys, relocating servers, and notifying the hacker’s address to centralized exchanges.
AiXBT’s Base Token Sees Price Plunge
The market was affected despite these preventative actions, as AiXBT’s Base token fell over 20% in a single day to $0.0938.
According to CoinGecko data, AiXBT’s market capitalization is $82.4 million at the time of writing, a substantial drop from its peak of $755 million in mid-January.
Given their continued rise in popularity in the cryptocurrency industry, this incident has sparked serious worries about the security flaws in AI-driven trading platforms. Despite the fact that the attack’s financial loss only amounts to a minor portion of AiXBT’s total market value, the hack has damaged investor confidence.
It draws attention to the necessity of stronger security measures to prevent such occurrences, which can have wider ramifications for the platform and its users.
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Crypto Community Witnesses Rise in Hacks
As cybercriminals and other malevolent actors use AI technology more frequently to take advantage of flaws in blockchain and cryptocurrency platforms, the increase in AI-driven crypto attacks has raised serious concerns.
AI is being used to create complex phishing scams aimed at investors, automate attacks, and even assess smart contract flaws. Hackers are taking advantage of the weak security features of decentralized finance (DeFi) platforms and AI-driven trading bots, which are becoming more and more popular.
High-profile attacks, like the most recent AiXBT breach, where AI techniques were employed to go beyond security, have sharply increased as a result.
In order to safeguard assets and uphold user confidence, crypto platforms must embrace more robust security processes and preventative measures as AI technology develops.