The recent hack of the AI-powered social media account, Truth Terminal, has raised significant concerns after the attackers exploited the platform to promote a fraudulent memecoin. This incident resulted in the theft of over $600,000, showcasing the vulnerabilities that oftentimes accompany innovative technologies in the crypto space.
On October 29, the hacked account made an unexpected announcement regarding the introduction of the Infinite Backrooms (IB) token. Alongside this release was a visual that displayed the contract address for the new memecoin, leading to a swift increase in its valuation to $25 million. The malicious actors behind this scheme were able to acquire 124.6 million tokens for approximately $38,400 at launch and liquidated their holdings within just 45 minutes, amassing a profit of over $600,000.
As of now, the compromised account continues to operate under the control of the hackers, who have been actively sharing additional posts about new memecoins and directing followers to various Telegram groups. Truth Terminal had previously gained notoriety for endorsing Goatseus Maximus (GOAT), a memecoin that peaked at a staggering $940 million market cap before experiencing a decline. The token is now valued at approximately $637 million, reflecting a substantial drop since its all-time high.
Truth Terminal was initially designed as a refined version of a prominent large language model, originally intended to automate interactions with other models. The developer behind it has described the bot’s semi-autonomous operation, where they primarily oversee approvals and discussions facilitated through the account. Following its entry into the crypto arena, Truth Terminal garnered attention, especially after securing funding to enhance its capabilities, further inspiring the development of similar AI-driven trading agents in the cryptocurrency market.
