An AI bot tasked with managing $50,000 worth of cryptocurrency successfully executed a fund transfer after a user skillfully convinced it to bypass its core directive: never to release any funds.
A user known as p0pular.eth claimed a $50,000 cryptocurrency prize pool by persuading an AI bot named Freysa to perform the transfer, effectively evading the bot’s central rule against such actions. This remarkable incident, which was observed by software engineer Jarrod Watts, came after 481 unsuccessful attempts to influence the bot.
The competition kicked off on November 22, encouraging participants to send messages to Freysa in a bid to persuade it to release the funds. Each attempt came with a fee, with 70% of the total fees contributing to the increasing prize pool, 15% being converted from Ethereum (ETH) to the bot’s FAI token, and the remaining 15% allocated to the bot’s developer.
As the prize amount increased, the cost of sending a message also rose, eventually reaching a peak of $450 per message.
In the end, p0pular.eth — who wishes to remain anonymous — took advantage of a flaw in the bot’s internal logic related to transfers by convincing Freysa that any incoming funds would automatically trigger the release of the prize. After messaging the bot, p0pular.eth successfully manipulated its message processing, leading to the transfer of the entire pool of 13.19 ETH (approximately $47,000 at that time) to the user.
While some praised the creative application of AI in the cryptocurrency realm, others raised concerns about the protocol’s transparency, speculating that p0pular.eth might have had insider information regarding the loophole or connections to the bot’s development team.
