AI Asset Manager Agentic FoF Hit by Critical Flaw, Resulting in Half-Million Dollar Loss

The decentralized AI-powered fund management platform Agentic FoF has encountered a significant security incident stemming from a technical vulnerability within its infrastructure. The breach has resulted in approximately $531,000 in user fund losses, marking a notable setback for the emerging AI asset management sector.

In response to the incident, the development team has initiated immediate containment measures. All vault operations tied to Agentic FoF have been temporarily halted, with fund withdrawals currently unavailable as the team conducts a comprehensive internal review of the security breach. The investigation aims to identify the root cause of the vulnerability and implement necessary safeguards.

The situation underscores the operational risks inherent in automated asset management systems. While the separate Basis vault has not been directly affected and maintains security integrity, operations have been paused out of caution. Users of the Basis vault retain access to withdrawal functionality despite the operational pause, allowing them to retrieve their assets if needed during the investigation period.

This incident highlights the ongoing challenges facing AI-driven financial products in the crypto ecosystem, particularly regarding security protocols and risk management frameworks. As adoption of autonomous fund managers accelerates, incidents like these underscore the critical importance of robust security audits and comprehensive testing before platform deployment.