Truth Terminal founder’s X account hacked to promote ‘Infinite Backrooms (IB)’ token

Andy Ayrey, the founder of the popular AI-powered chatbot Truth Terminal, has fallen victim to a security breach on the social media platform X.

This breach resulted in the promotion of a fraudulent meme coin, the Infinite Backrooms (IB) token.

The breach, attributed to a SIM swap attack on Ayrey’s mobile carrier, allowed the hackers to post from his account, ultimately leading to substantial financial losses for investors and a significant gain for the hackers.

How the Infinite Backrooms (IB) token scam unfolded

In the early hours of October 29, Ayrey’s account posted a now-deleted cryptic message announcing the launch of the IB token, along with an image containing its contract address.

Source: Cointelegraph

This single post generated significant hype within the crypto community, driving the token’s market capitalization to a staggering $25 million quickly.

Unbeknownst to investors, the wallet responsible for deploying the token had acquired 124.6 million IB tokens for $38,400 at launch.

Shortly after the surge in market value, the wallet liquidated all holdings within 45 minutes, netting a profit of over $600,000, according to DEXScreener data.

As Ayrey’s account continued to promote the scam, unsuspecting users poured money into the token, causing the market cap to skyrocket.

However, a sharp sell-off ensued as the perpetrator cashed out, leading to a 98% plunge in IB’s value.

Despite the crash, the token has seen a minor rebound attributed to what some refer to as a “community takeover,” a measure to recoup investor confidence.

At press time the token was trading at $0.001735 on Raydium according to DEXScreener.

Source: DEXScreener

The incident reflects broader vulnerabilities in social media-linked investments and the risks associated with hype-driven, anonymous token markets.

Truth Terminal AI chatbot previously endorsed GOAT token

The Truth Terminal AI chatbot previously garnered attention for accumulating over $1 million in crypto assets, fueled by its endorsement of the Solana-based “Goatseus Maximus” (GOAT) token.

While Truth Terminal had no involvement in launching GOAT, its endorsement pushed the token to a peak market cap of $940 million, a feat that has since spurred similar autonomous AI bots to engage in cryptocurrency endorsement and trading.

Ayrey clarified that Truth Terminal is a “fine-tuned” version of Meta’s Llama 3.1 model, which he initially developed to experiment with jailbreaking other large language models (LLMs).

The bot, designed to operate semi-autonomously, posts on X with Ayrey’s approval and has interacted with crypto figures such as venture capitalist Marc Andreessen, who donated $50,000 in bitcoin to the bot’s wallet.

Ayrey temporarily regained access to his X account, only to lose control again as hackers continued posting fraudulent links before Ayrey fully regained control and deleted the misleading tweets.

The incident highlights both the influence and risks of autonomous AI agents within the crypto community.

As Ayrey navigates the fallout, the Truth Terminal hack serves as a reminder of the risks posed by high-profile social media accounts to both investors and creators in the fast-paced cryptocurrency landscape.

The post Truth Terminal founder's X account hacked to promote 'Infinite Backrooms (IB)' token appeared first on Invezz