Yu Hu and Kaito AI experienced a security breach of their official X accounts, following which hackers released false information about the safety of the Kaito token wallet.
The attackers made unauthorized use of these accounts to spread deceitful statements regarding Kaito token wallet safety to instigate investment panic. Attackers initiated short positions on KAITO tokens just before the incident with the purpose to benefit from the cryptocurrency price decrease. The Kaito AI personnel responded immediately to re-establish security measures following the incident while reassuring their community about the wallet safety status.
Hackers take over Kaito AI’s X accounts
On March 15, 2025, both Kaito AI’s official X and Yu Hu accounts were hacked. The attackers posted misleading messages warning investors that Kaito token wallets had been compromised. This caused panic among token holders, leading some to sell their holdings at a loss.
Deleted post from founder Yu Hu’s X account, spreading FUD about Kaito AI’s fund safety. Source: Yu Hu (X/Twitter)
The hackers assumed short positions on KAITO tokens before starting their manipulation actions that spread false information. The intentional market manipulation shows clear signs of price manipulation with a purpose of generating profit from artificially reduced values. According to Yu Hu, a single hacking group took control of DB News’ X account to perform trading actions on Hyperliquid and steal $1 million.
Hackers spreading misinformation about Kaito AI funds safety in a now-deleted post from the project’s official X account. Source: Kaito AI (X/Twitter)
Kaito AI team responds to security breach
Kaito AI automatically reacted once unauthorized activity came to its attention. The team successfully retrieved access to both Twitter accounts to delete fake tweets and provide clarifying statements against false information. Users received confirmations from KAITO that their wallets remained secure throughout, while the social media accounts became the only accessible target for the security breach.
In an official statement, Kaito AI confirmed that their systems remained secure despite the attack. Yu Hu also addressed the situation, explaining that once he became aware of the hack, he removed the misleading posts and changed his account credentials.
The growing threat of social media hacks in Crypto
Kaito AI’s information breach is part of an ongoing problem targeting the cryptocurrency market. Hackers maintain their ability to exploit social media systems by spreading false content to control market values efficiently. Both incidents are comparable to the two previous cases: the Cardano Foundation’s X account hack from late 2024 and the Pump.fun breach, which occurred on February 26, 2025.
Corporate hacking groups sponsored by states have targeted the industry by pretending to be investors and project leaders while deceiving stakeholders. The volatility in crypto markets receives further instability through such attack methods making investments riskier. Kaito AI’s immediate intervention managed to stabilize the situation, safeguarding the affected operations from accruing additional losses. Crypto needs enhanced cybersecurity protocols because of this incident.