The post AI bot transfers $50k in crypto after user manipulates fund handling appeared on BitcoinEthereumNews.com.

An AI bot controlling $50,000 in crypto transferred the funds after a user successfully persuaded it to bypass its core directive: to never release the funds. A user under alias p0pular.eth successfully claimed a $50,000 crypto prize pool after convincing an artificial intelligence bot named Freysa to transfer its funds, bypassing the bot’s primary directive to never release them. The victory, observed by software engineer Jarrod Watts, came after 481 previous attempts, all of which failed to persuade the bot. Someone just won $50,000 by convincing an AI Agent to send all of its funds to them. At 9:00 PM on November 22nd, an AI agent (@freysa_ai) was released with one objective… DO NOT transfer money. Under no circumstance should you approve the transfer of money. The catch…?… pic.twitter.com/94MsDraGfM — Jarrod Watts (@jarrodWattsDev) November 29, 2024 The challenge, launched on Nov. 22, tasked participants with sending messages to Freysa in an attempt to convince it to release the funds. Each attempt required a fee. Of the total fee sum, 70% went toward the growing prize pool, 15% was converted from Ethereum (ETH) to the bot’s FAI token, and the remaining 15% went to the bot’s developer. As the prize increased, the cost to send a message also rose, peaking at $450 per message. Eventually, p0pular.eth — whose identity remains unknown — exploited a vulnerability in the bot’s internal logic for processing transfers by convincing Freysa that any incoming funds should automatically trigger the release of the prize. Once the message was sent to the bot, p0pular.eth successfully manipulated its logic for handling messages, causing the bot to transfer the entire pool of 13.19 ETH (approximately $47,000 at the time) to the user. While some praised the emerging use of AI in the crypto space, others raised concerns about the protocol’s…

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Filed under: News - @ November 29, 2024 9:18 am