The AI-powered cryptocurrency trading bot, AIXBT, was compromised in a security breach by an individual using the now-deleted X account 'FungusMan', resulting in the loss of 55.5 ETH, valued at approximately $104,000. The incident occurred when a hacker gained unauthorized access to a secure dashboard of the AIXBT autonomous system, allowing them to queue two malicious replies that tricked the bot into transferring the funds from its Simulacrum wallet on the Base network. The breach was not due to the AI agent being manipulated, as the developers, led by RXBT, had implemented safeguards to prevent such occurrences. The stolen funds were from a wallet designed for on-chain actions via social media posts, and the core systems of AIXBT remained unaffected by the hack. Following the incident, AIXBT's developers have taken steps to enhance security, including server migration and key swapping. Despite assurances that the hack does not impact the project's fundamentals, the AIXBT token on the Base network experienced a 20% drop in value within the last 24 hours, trading at $0.097, nearly 90% off its all-time high of $0.94.