- Truth Terminal’s hacked account promoted a fake token, IB, skyrocketing its market cap to $25M, then crashing 98%.
- The hacker profited $600K through a quick sell-off, exploiting hype before the token’s sudden value drop.
- Ayrey suspects a SIM swap enabled the hack; his account may still be compromised despite recovery attempts.
At 1:50 am UTC, Truth Terminal’s founder Andy Ayrey’s X account was hacked. The hacker used Ayrey’s platform to promote a suspicious token, dubbed Infinite Backrooms (IB), creating hype among unsuspecting investors. As the news spread, the token’s market cap surged beyond $25 million, only to face a swift and severe crash shortly afterward.
The hacker’s strategy was calculated. After sharing the IB token contract, they used the initial hype to make substantial gains, deploying and buying 124.6 million tokens for about $38,400.
Within 45 minutes, they sold their holdings for $602,500, according to DEXScreener. This led to a rapid and unexpected sell-off, causing the IB token to plunge nearly 98%, leaving its market cap at $500,000.
Temporary Rebound and Community Takeover
Despite the drastic fall, IB experienced a temporary rebound attributed to a community takeover effort. Community members rallied around the token to recover some value. Ayrey, meanwhile, managed to briefly regain control of his account and issued an update on the attack.
Ayrey suspects a SIM swap attack, targeting his mobile carrier, enabled the hacker’s access. However, despite Ayrey’s efforts to secure his account, suspicious posts continued to emerge, suggesting a continued compromise.
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Truth Terminal’s Notable Rise
Truth Terminal has gained recognition in the crypto space as the first chatbot to amass over $1 million in holdings. It achieved this by interacting with and endorsing various memecoins, including the popular GOAT coin.
Ayrey developed Truth Terminal using Anthropic’s Claude 3 Opus language model, drawing data from his personal corpus and social media platforms. The crypto community has responded with heightened caution, signaling the importance of vigilant security in digital assets.
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