Bankr, a crypto trading platform that employs AI to execute user commands, temporarily locked down its system following a breach that compromised 14 crypto wallets. The company halted all swap, transfer, and token deployment activities while investigating the incident, assuring users that any lost funds would be reimbursed.
The breach reportedly exploited the platform’s AI agent through social engineering and prompt injection techniques, abusive methods that manipulate AI responses with malicious commands. Security experts identified that the attacker used these vulnerabilities to bypass approval protocols, gaining control over multiple wallets and transferring significant assets to attacker-owned addresses.
Among the victims was tech entrepreneur Austen Allred, whose wallet connected to an AI assistant project lost Ether, although his memecoin assets were untouched. Analysis suggested the attacker obtained private keys through indirect means rather than logging directly into Bankr accounts.
Bankr advised affected users to immediately stop using compromised wallets, create new wallets with fresh seed phrases on secure devices, and transfer remaining assets out. For those unable to move their funds, revoking existing approvals was recommended. Users were also urged to scan their devices for malware or suspicious browser extensions that could jeopardize security further.
The incident adds to growing security challenges in the crypto sector, which has seen massive thefts in recent months. Although the total amount stolen from the 14 wallets has not been disclosed, some losses reportedly reached as high as $150,000 per wallet. Bankr continues to investigate and update its user base as it works to contain the fallout and restore platform integrity.