AIXBT Security Flaw Leads to a $106K Ethereum Theft! How Hackers Stole 55.50 ETH from AIXBT?

In an unexpected and shocking turn of events, AIXBT has faced a major security breach, leading to a 55.50 ETH theft. The AIXBT security breach has given rise to a lot of anxiety about the potential weaknesses of AI-led financial systems. Unauthorized entry into the bot’s dashboard facilitated the theft, shedding light on the scenarios under which autonomous trading tools are susceptible to abuse. This incident, poses a question to firmly protect user funds in the crypto space with an iron security defense. Accordingly, there is a notable decline in the AIXBT token price resulting from this horrifying security lapse as perceived by the markets.

AIXBT Security Breach: A Threat to AI-Driven Crypto

AIXBT is an AI-powered crypto bot that suffered a major security breach, leading to the theft of 55.50 ETH worth about $100k. The breach was reportedly committed by a hacker, who used a now-deleted X account named FungusMan to exploit AIXBT’s autonomous response system by queuing malicious replies. These replies coerced AIXBT into sending out 55.50 ETH from its Simulacrum wallet, which allows on-chain transactions through social media posting. 

The developer was clear that the breach was not due to AI manipulation, but rather to unauthorized access to the dashboard. The developer has since adopted extra security measures, including migrating servers, swapping keys, and reporting the hacker’s address to exchanges. Even after these measures, there was about a 20% fall in the AIXBT tokens within the first 24 hours after the breach, indicating a general market concern relating to AI security vulnerabilities.

The whole market for AI agent tokens has also sharply retraced, with market capitalization diminishing from almost $17 billion to less than $5 billion; therefore, this security breach and subsequent 55.50 ETH theft signify the need to secure AI systems in the crypto arena to avert occurrences like that.

Ethereum Price Prediction: Key Levels to Watch for Potential Breakouts

As per the latest Ethereum price prediction, it has been facing strong resistance at about $1,918. Support, on the other hand, falls around $1,874. ETH started with the development of an upward channel, but rejection at the resistance level forced the price further down. However, repeated attempts to breach the resistance have met with selling pressure that has dragged further the price down, meaning that bullish momentum is quickly weakening.

Chart 1: Analysed by anushrivarshney2613, published on TradingView, March 19, 2025

The MACD still shows a series of Golden Crosses that can signal bullish, but the previous Death Crosses suggest that the bearish is still there. Traders should keep an eye out for any strong confirmation of an upward trend continuing or, on the other hand, more declines below the support area.

A bullish momentum may allow a retest of the $1,950 resistance. A breakdown below $1,874 support may induce fresh selling pressure and lead to further losses toward the $1,860 level. Traders are advised to keep a sharp eye on the latest news as well as on the indicators.

Future Prospects for Ethereum: A Path to Recovery

Overall, the recent AIXBT security breach, which led to a 55.50 ETH theft, has created ripples around the crypto community, illustrating the vulnerability of AI-based systems. This crime emphasizes the need for strong security systems to protect user funds. However, such a breach reminds us that AI promises much in crypto trading but at the same time, it must be secured to build a trust foundation for the maintenance of stability in the market.