The founder of the popular AI chatbot Truth Terminal, Andy Ayrey, fell victim to a cyber attack in which his account on the social platform X was hijacked. The hacker used Ayrey's account to promote a fraudulent memecoin, earning an estimated $600,000. The creator posted a video from another account to tell him his account had been hacked.

Hack on Ayrey's X account leads to successful crypto fraud

In the early hours of Oct. 29, a mysterious message appeared on Ayrey's account announcing the launch of a new memecoin called Infinite Backrooms (IB). The message, including an image with the token's contract address, spread quickly and generated considerable attention within the cryptocurrency community. The fuss surrounding the token briefly increased its value to as much as $25 million.

The fraudulent wallet behind this token was responsible for the purchase of 124.6 million IB tokens for $38,400. Within just 45 minutes, the tokens were sold again, leading to a profit of $602,500 (€550 000). This sudden sale caused the token's value to plummet by nearly 98%, dropping its market capitalization to $500,000. Although the price of the token has since partially recovered, community members attribute this recovery to a "community takeover" of the coin.

SIM swap attack: Hacker keeps account under control

Ayrey briefly managed to get his account back, explaining that the hacker had gained access through a so-called SIM swap attack. This technique involves transferring the victim's phone number to a new SIM card in the hands of the hacker, who then gains access to sensitive accounts via two-step verification. In a now-deleted post, Ayrey apologized to his followers, stating that the hacker had manipulated his mobile provider. Shortly after his apology, however, suspicious messages reappeared on his account, indicating that Ayrey has not yet regained full control of his profile.

Truth Terminal: AI chatbot involved in memecoin holdings

Truth Terminal, the AI chatbot developed by Ayrey, has recently gained considerable popularity within the crypto world. The chatbot now boasts more than $1 million in crypto holdings, obtained through donations of memecoins such as Goatseus Maximus (GOAT), among others. This involvement of Truth Terminal in multiple memecoins instilled trust in the community, which allowed the hacker to exploit the credibility of Ayrey's account for his scam.