Kaito is suspected of misappropriating 90 million USD new funds to participate in Binance wealth management? Official clarification: it is just temporarily stored.

The AI-driven Web3 information aggregation platform Kaito AI has been questioned by the community for allegedly misappropriating user funds that participated in the Limitless project collaboration for the Limitless IPO to engage in financial activities on Binance. (Background: Did Kaito's algorithm trap the KOLs?) (Additional background: What is Kaito? AI-driven encryption intelligence aggregation platform: A comprehensive overview of features, team, and tokenomics) This afternoon (30), X user @0xleng1 posted a revelation stating that on-chain data shows that the AI-driven Web3 information aggregation platform Kaito AI allegedly misappropriated user funds participating in the Limitless IPO project held in collaboration with Limitless to engage in financial activities on Binance. In response, Kaito's related staff stated that Kaito has been restoring its cooperation with the custodian FalconX since September 18, but during this period, it will temporarily use Binance to hold funds, but it will only be for storage and will not be misappropriated. The staff member stated that after the process is completed, all funds will be transferred back on-chain and managed by FalconX, in accordance with its practices since its launch in July 2025. However, crypto KOL @cryptobraveHQ retweeted this post and added that currently, this IPO project has absorbed $90 million in funds, and Kaito's actions remain questionable: First, after the funds enter Binance, they become a "black box" state, and users cannot verify whether they will be used for financial activities, arbitrage, or even futures trading; second, even if the official statement is true, Kaito may have been conducting similar operations since its launch, raising concerns about transparency. Kaito allegedly misappropriated hundreds of millions of dollars in user IPO principal, depositing it into Binance's financial services. According to on-chain data shared by community user @0xleng1, Kaito AI @KaitoAI allegedly deposited user funds for the Limitless IPO into Binance's financial services. Currently, the funds for Limitless's IPO have exceeded $90 million, and Kaito's actions are suspected of misappropriating hundreds of millions of dollars in user IPO principal without user authorization for profit on Binance's financial services. Kaito… pic.twitter.com/OxQLW7V14o — Crypto Fearless (@cryptobraveHQ) September 30, 2025 KAITO coin performance The KAITO coin has recently shown strong performance, having risen from around $1.04 to $1.45 at the time of writing after starting a pump on September 27, with an increase of up to 42% in the past 7 days. It is still uncertain whether Kaito AI really misappropriated user funds or, as the official claims, is simply storing them temporarily. However, if the community continues to question Kaito, the coin price may also come under certain pressure. Related reports The Chronicle of Mouth: From Private Domain to Public Domain, and the Struggle Between AI's Spear and Shield Coinbase Venture: The Rise of On-Chain AI, Overview of All-Track Landscape and Business Model Alpha Mining: Wayfinder AI agent can "learn together" to perform DeFi tasks, free sign up for airdrop <Kaito allegedly misappropriated $90 million IPO funds to participate in Binance's financial services? Official clarification: just temporary storage> This article was originally published in BlockTempo, the most influential Blockchain news media.