Kaito AI, an AI-driven crypto market analysis platform, and its founder, Yu Hu, fell victim to a social media hack on March 15. Attackers took control of their X (formerly Twitter) accounts, spreading false claims that Kaito wallets had been compromised and urging users to withdraw funds.

According to blockchain analyst DeFi Warhol, the hackers likely shorted KAITO tokens before making these alarming posts. The strategy was designed to trigger a panic sell-off, crash the token’s price, and generate profits for the attackers. However, Kaito AI quickly regained control of the accounts and confirmed that the platform’s wallets were not affected by the breach.

Kaito AI stated that despite their strong security protocols, the exploit resembled other recent high-profile social media hacks targeting crypto firms. The incident highlights the growing wave of cyber threats facing the industry, where hackers exploit trust in official accounts to manipulate markets.

Social media attacks are becoming a major concern for the crypto sector. On Feb. 26, the X account of Pump.fun was hijacked to promote fraudulent tokens, with the hack linked to similar breaches of Jupiter DAO and DogWifCoin. Meanwhile, Canadian regulators recently flagged an elaborate crypto scam called CanCap, which used fake news articles and fabricated endorsements from politicians to lure investors.

Even crypto executives are being targeted. The notorious North Korean Lazarus Group is now impersonating venture capitalists in Zoom meetings. Victims are tricked into downloading a supposed "patch" to fix audio issues, which actually installs malware designed to steal private keys.

With the crypto industry under constant attack, users must remain vigilant against increasingly sophisticated cyber threats.