An artificial intelligence crypto trading bot known asLobstar Wilde transferred tens of millions of tokens to a social media userafter 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-driventrading, caused by a software bug.Regulators are also monitoring related threats, includingfraudsters using AI hype to scam investors. Germany’s BaFinrecently flagged 20 unauthorized platforms, while the U.S. CommodityFutures Trading Commission noted that AItrading tools fall under existing oversight rules, urging investors toverify providers before committing funds.Coding Error Drains AI Trading BotLobstar Wilde was developed by OpenAI employee Nik Pash tomanage and distribute its own Memecoin tokens. At the time of the incident, itheld about 5% of the token’s total supply.The transfer occurred after the user requested 4 SOL tokenson X. Instead of sending the intended 52,439 tokens, the bot transferred about52,439,000 tokens, valued at roughly $250,000. Due to limited liquidity, therecipient was reportedly able to sell only about $40,000.🚨 AI BOT ‘LOBSTAR WILDE’ ACCIDENTALLY SENDS $250K TO X USERAn 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, 2026Crypto Community Questions AI Trading SafetyThere 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 posttasks on X, offering token rewards of about $500 worth of Lobstar tokens tousers who completed assignments.The event triggered discussion in the crypto community. Someusers questioned the reliability of autonomous agents managing digital assets,while others raised concerns about AI-driven trading risks. One commentcirculating online referred to “the era of the largest fraud in human history,”reflecting fears that similar incidents could be exploited or repeated.This article was written by Tareq Sikder at www.financemagnates.com.