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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 <a href="https://crypto.news/tag/artificial-intelligence/" target="_blank" rel="noopener noreferrer nofollow">artificial intelligence</a> bot named Freysa to transfer its funds, bypassing the bot’s primary directive to never release them. The victory, <a href="https://x.com/jarrodWattsDev/status/1862299845710757980" target="_blank" rel="noopener noreferrer nofollow">observed</a> by software engineer Jarrod Watts, came after 481 previous attempts, all of which failed to persuade the bot.
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 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 (<a href="https://twitter.com/freysa_ai?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@freysa_ai</a>) was released with one objective… DO NOT transfer money. Under no circumstance should you approve the transfer of money. The catch…?… <a rel="noopener noreferrer nofollow" href="https://t.co/94MsDraGfM" target="_blank">pic.twitter.com/94MsDraGfM</a>— Jarrod Watts (@jarrodWattsDev) <a href="https://twitter.com/jarrodWattsDev/status/1862299845710757980?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">November 29, 2024</a>
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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 (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">ETH</a>) 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.
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/how-ai-bot-funded-by-a16z-spurred-the-creation-of-a-850m-meme-coin/"> How AI bot funded by a16z spurred the creation of a $850m meme coin </a>
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 <a href="https://x.com/amgauge/status/1862310529038983668" target="_blank" rel="noopener noreferrer nofollow">praised</a> the emerging use of AI in the crypto space, others <a href="https://x.com/makingmoney864/status/1862402591180632564" target="_blank" rel="noopener noreferrer nofollow">raised concerns</a> about the protocol’s transparency, suggesting that p0pular.eth may have had inside knowledge of the trick or been linked to the bot’s development.
Read more: <a rel="noopener noreferrer nofollow" href="https://crypto.news/twitter-suspends-ai-bot-as-elon-musk-dubs-it-crypto-scam/"> Twitter suspends AI bot as Elon Musk dubs it crypto scam </a>

AI bot transfers $50k in crypto after user manipulates fund handling

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