X accounts of Kaito and founder Yu Hu hacked to spread unfounded reports of token supply issues
Quick Take
- The X accounts of web3 information platform Kaito and its founder Yu Hu were hacked on Saturday and used to spread unfounded reports of issues with the platform’s native token, causing its price to dip nearly 10% before recovering.
- “KAITO wallets are safe…we are investigating how the X compromise happened,” Hu wrote on X.
The native token of InfoFi network Kaito dipped nearly 10% before recovering on Saturday after the network's X account and the account of its founder Yu Hu were hacked in order to spread seemingly unfounded rumors about issues with the token.
"I have regained control over my X account," Kaito founder Yu Hu wrote on X. "To [re]iterate - KAITO wallets are safe...we are investigating how the X compromise happened."
"They have waited for Yu Hu’s timezone (where he’s asleep) to do it," wrote Sandra Leow, a research partner at Kaito. Kaito's official X account also confirmed the X account compromise, and reassured investors that the Kaito wallets themselves remain under control.
The KAITO token, which powers the networks rewards to 'yappers' who publish engaging posts in the cryptocurrency community, dropped by nearly 10% on Saturday before recovering shortly after, according to The Block's KAITO Price Page.
The token dipped after the Kaito X account published a post warning of "irregular activity in multiple wallets linked to Kaito AI." Hu's account also spread unfounded rumors of issues with the token, stating, "The funds are not safe for now. Be cautious please." Both posts have since been deleted.
A screenshot of the post shared by the KaitoAI account after it was reportedly compromised.
No large-scale moves of Kaito tokens occurred during the period following the posts, blockchain data shows.
"We had high standard security measures in place to prevent it - so it seems to be similar or the same to other recent Twitter account hacks," Kaito's account posted following the hack. "We’ll update as soon as we can."
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