An artificial intelligence crypto trading bot known as Lobstar Wilde transferred tens of millions of tokens to a social media user after what appears to have been a technical error.

According to PANews, citing The Block, the bot “accidentally” sent all of its Memecoin holdings to a user identified as “treasure David” on X. The incident highlights the technical risks of AI-driven trading, caused by a software bug.

Regulators are also monitoring related threats, including fraudsters using AI hype to scam investors. Germany’s BaFin recently flagged 20 unauthorized platforms, while the U.S. Commodity Futures Trading Commission noted that AI trading tools fall under existing oversight rules, urging investors to verify providers before committing funds.

Coding Error Drains AI Trading Bot

Lobstar Wilde was developed by OpenAI employee Nik Pash to manage and distribute its own Memecoin tokens. At the time of the incident, it held about 5% of the token’s total supply.

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The transfer occurred after the user requested 4 SOL tokens on X. Instead of sending the intended 52,439 tokens, the bot transferred about 52,439,000 tokens, valued at roughly $250,000. Due to limited liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, the recipient was reportedly able to sell only about $40,000.

🚨 AI BOT ‘LOBSTAR WILDE’ ACCIDENTALLY SENDS $250K TO X USER

An AI trading agent created by an OpenAI employee mistakenly transferred its entire 5% of supply = 53M token holdings, worth $250,000, to a user who had asked it for just 4 SOL. pic.twitter.com/jjsTj8Ct40

— Coin Bureau (@coinbureau) February 23, 2026

Crypto Community Questions AI Trading Safety

There has been no indication that the transfer was reversed, and no further details have been disclosed about safeguards or internal review.

Following the incident, Lobstar Wilde continued to post tasks on X, offering token rewards of about $500 worth of Lobstar tokens to users who completed assignments.

The event triggered discussion in the crypto community. Some users questioned the reliability of autonomous agents managing digital assets, while others raised concerns about AI-driven trading risks. One comment circulating online referred to “the era of the largest fraud in human history,” reflecting fears that similar incidents could be exploited or repeated.