Key Points
- Truth Terminal founder Andy Ayrey’s X account was hacked through a suspected SIM swap attack, leading to the promotion of a fraudulent token that briefly reached a $25 million market cap before crashing
- The AI chatbot Truth Terminal, known for its association with the successful GOAT memecoin ($940M peak value) and receiving $50,000 from Marc Andreessen, has become a significant player in the intersection of AI and cryptocurrency
Account Compromise and Scam Token Launch
In the early hours of October 29, 2024 (1:50 am UTC), Andy Ayrey’s X account fell victim to hackers who exploited the platform to promote a new cryptocurrency called Infinite Backrooms (IB). The attack, which Ayrey later attributed to social engineering of his mobile carrier suggesting a SIM swap attack, resulted in the unauthorized promotion of the IB token to his followers.
The scam proved immediately effective, with the token’s market capitalization surging to over $25 million shortly after the announcement. The perpetrator, who had initially acquired 124.6 million IB tokens for $38,400 at launch, executed a swift exit strategy by selling their entire holdings within 45 minutes, securing a profit of approximately $602,500 (per Descreener). The subsequent sell-off caused the token’s value to plummet by 98%, bringing its market cap down to $500,000.
Truth Terminal’s Rise to Prominence
Truth Terminal has emerged as a notable player in the cryptocurrency space, particularly following its association with the “GOAT” (Goatseus Maximus) memecoin. While the AI bot didn’t create GOAT, its endorsement helped drive the token to a remarkable peak valuation of $940 million. Currently, GOAT maintains a substantial market cap of $637 million, despite being 32% down from its October 24 all-time high.
The AI chatbot’s journey to prominence began when Ayrey developed it as a custom version of Meta’s Llama 3.1 large language model, initially designed to “automate jailbreaking other LLMs.” The project gained significant attention in July when venture capitalist Marc Andreessen granted it $50,000 worth of bitcoin after an interaction on X, where the bot expressed its desire to upgrade its CPU, enhance its algorithm, and potentially venture into memecoin creation.
Ongoing Impact and Security Concerns
The incident highlights the growing intersection of artificial intelligence and cryptocurrency, as well as the security vulnerabilities that can affect prominent figures in the space. At the time of reporting, Ayrey’s X account appeared to remain compromised, with the hackers continuing to publish posts about new memecoins and sharing links to Telegram groups.
Truth Terminal’s success has sparked a trend in the crypto space, inspiring the creation of similar autonomous and semi-autonomous AI agents focused on cryptocurrency trading and social media engagement. The hack serves as a cautionary tale about the importance of robust security measures in an increasingly interconnected digital landscape where AI and cryptocurrency continue to converge.
