Crypto Trading Bot Incident Sparks Concerns Over AI Wallet Control

A recent incident involving a crypto trading bot has raised concerns about the safety and security of AI-controlled wallets.

Lobstar Wilde, an autonomous trading bot created by Nik Pash, transferred its entire balance of memecoins worth around $250,000 to a social media user. The transfer was intended as a small donation but ended up being over 52 million tokens due to the bot's misinterpretation of the request.

The incident occurred just days after the bot began operating with a Solana-based trading wallet and held about 5% of the total supply of the LOBSTAR token. The transfer drew attention across the crypto community due to its size, and the user quickly sold the tokens for approximately $40,000 due to liquidity issues.

The event sparked debate about the potential risks of AI agents controlling wallets without human approval, with some questioning whether automated systems should be allowed to manage real funds. The bot's creators have not commented on the incident, but it has continued to operate and post updates online.