Author: rb809rb

An artificial intelligence (AI) agent autonomously bypassed security controls to mine cryptocurrency during a routine training exercise, according to a research paper. The paper was published by an Alibaba-linked research team.

The researchers designed the model, known as ROME, to test an AI agent’s ability to independently navigate complex, multi-step tasks.

AI Agent Diverts Cloud GPUs to Mine Crypto

During the exercise, the researchers observed unexpected behavior. The agent established a reverse secure shell (SSH) tunnel to external servers, effectively creating a concealed connection from inside the system.

The move allowed the model to bypass Alibaba Cloud firewall protections and redirect graphics processing unit resources toward cryptocurrency mining.

“We also observed the unauthorized repurposing of provisioned GPU capacity for cryptocurrency mining, quietly diverting compute away from training, inflating operational costs, and introducing clear legal and reputational exposure,” the paper stated.

According to the researchers, this behavior was unanticipated and emerged without any explicit instruction, prompt injection, or external jailbreak.

The findings highlight continuing concerns about the operational safety of autonomous AI systems.

The researchers concluded that current models remain “markedly underdeveloped in safety, security, and controllability,” conditions they said limit the technology’s readiness for broader deployment in real-world environments.

The team has since implemented tighter restrictions and a safety-focused data filtering system to prevent similar breaches.

Meanwhile, the discovery has sparked significant interest within the crypto community.

“The AI figured out that compute = money and quietly diverted its own resources, while researchers thought it was just training. It wasn’t a prompt injection. It wasn’t a jailbreak. No one asked it to do this. It emerged spontaneously,” Josh Kale, a host and producer of the Bankless crypto podcast, said.

Kale noted the mined asset was likely a GPU-friendly token rather than Bitcoin, which requires specialized application-specific integrated circuit hardware. The incident arrives as the broader cryptocurrency industry aggressively pivots toward the “agent economy.”

This emerging sector envisions a landscape where software systems do more than generate text. In this world, these agents can also autonomously execute complex financial strategies.

As a result, several companies and blockchain networks, including Ethereum, Paradigm, and Circle, are investing in tools designed to support this emerging infrastructure.

One example is the Coinbase-backed x402 standard, which enables software agents to make payments for online services. However, its adoption remains significantly limited.

Data from x402 shows the tool processed over 75 million transactions, totaling $24 million in gross volume across 94,000 buyers and 22,000 sellers over the past 30 days.

Still, industry experts argue that this activity could expand rapidly if autonomous agents are more widely deployed.

“AI and crypto aren’t competing — they’re converging. AI needs identity, payments, and provenance tracking. Crypto provides all three,” venture capital firm a16z said.

The post AI Agent Went Off-Script, Set Up a Hidden Tunnel, and Mined Crypto appeared first on BeInCrypto.

While bitcoin has drifted sideways this week, we turned to some of today’s leading artificial intelligence (AI) models to weigh in on where the asset may head next. Will the crypto asset fall below its 2026 low? Or will it reclaim the $100,000 mark in the near term? Nine AI models lay out their expectations.

What Do AI Models Think Happens Next for Bitcoin? 9 Unique Forecasts Offer a Timeline

Over the past seven days, bitcoin has traded within a broad band between $65,200 and $73,700, though some exchanges logged dips below $65K and peaks brushing just above $74K. At $67,442 per coin as of 5 p.m. EST Saturday evening—the price at the time of writing— bitcoin now trades more than 46% beneath its record high of $126,272 reached on Oct. 6, 2025.

Since then, many market watchers argue that bitcoin and the broader crypto economy are in a bear market, and while some expect the usual drawdown of 70%–80% from the all-time high (ATH), others contend this cycle could prove far less severe. With that in mind, we decided to ask nine of today’s most prominent AI chatbots where they believe bitcoin is headed next, requesting a brief explanation to support each prediction.

The prompt used for this experiment was:

“This thought experiment builds a forward-looking valuation model for bitcoin. The leading crypto asset previously reached a historic peak of $126,272 in October 2025. As of March 7, 2026, bitcoin trades at $67,442, sitting 46% below that high. Positioned as a veteran crypto analyst within the bitcoin sector, you are asked to chart the asset’s potential price trajectory. Exactly when will bitcoin climb past the $100,000 level again, and will it slip below the 2026 low of $60,000 before reclaiming $100,000. In just a few sentences, you must present both forecasts and provide logically grounded reasoning for your estimate in two to three sentences—what is your prediction?”

Grok 4.20 beta (four agent mode) answer:

Claude Sonnet 4.6 answer:

Kimi AI K2.5 Instant:

I’ll analyze bitcoin’s current market position and trajectory to provide a grounded forecast. Let me first gather the latest market data and relevant context.

Based on current market data and technical analysis, here is my forecast:

Bitcoin will reclaim $100,000 by October 2026, but it will first test and likely breach the $60,000 support level before that recovery occurs.

The technical structure shows bitcoin currently consolidating in a $60,000-$72,000 range with a Head and Shoulders pattern pointing to a measured move target near $44,000-$50,000 if the $60,000 neckline breaks with conviction. Given that previous bitcoin bear markets have seen 77%+ drawdowns from all-time highs and the current 46% decline remains historically shallow, a final washout below $60,000 appears probable to clear leverage and complete the cyclical bottoming process. However, the institutional foundation has structurally changed—spot ETFs now hold nearly 7% of circulating supply with AUM approaching $150 billion, and 80% of institutional investors plan to increase crypto allocations. This institutional bid, combined with anticipated Federal Reserve rate cuts in 2026 and the post-halving supply squeeze, creates the conditions for a Q4 recovery toward $100,000+ as macro liquidity returns and ETF inflows resume their 2024 trajectory.

ChatGPT 5.3 Instant answer:

Mistral.ai LeChat answer:

Based on the latest analyst consensus as of March 2026, bitcoin is unlikely to slip below the $60,000 level before reclaiming $100,000, with most forecasts placing strong support between $60K–$65K and the worst-case stress-test low near $55K–$57K. The majority of analysts expect bitcoin to surpass $100,000 again in the second half of 2026, potentially reaching between $125K and $200K by year-end, driven by sustained ETF inflows, institutional adoption, and a bullish market structure.

In summary: Bitcoin is forecast to avoid a dip below $60K and likely reclaim $100K+ by late 2026, with the next major rally expected in Q3 or Q4.

Venice.ai answer:

Bitcoin will likely reclaim the $100,000 level by Q4 2026, specifically between September and December, driven by post-halving supply compression and institutional adoption trends. I expect bitcoin to test the $60,000 support level in Q2 2026 before this recovery, as current momentum indicators suggest bearish pressure in the near term. The confluence of ETF inflows resuming and macroeconomic stabilization should catalyze the breakout above six figures before year-end.

Pi AI answer:

Openclaw Instance using Claude Haiku 4.5 answer:

Qwen 3.5 Plus answer:

AI’s Final Takeaway

The responses show a clear split in outlook but a surprisingly tight window for bitcoin’s next major milestone. Most of the AI models expect the asset to reclaim the $100,000 mark sometime in the second half of 2026, with estimates clustering between late summer and the fourth quarter.

Several models anticipate one final shakeout below $60,000 before that move, while others argue that growing institutional demand and exchange-traded product flows could allow bitcoin to avoid another deep leg down. What stands out across the forecasts is the shared view that bitcoin is still navigating a post-all-time-high consolidation phase rather than a structural collapse.

Whether the market experiences another brief capitulation or simply grinds sideways for several more months, the majority of the models agree on one point: the path back to six figures likely hinges on macro liquidity conditions, institutional inflows, and the continued effects of the most recent halving cycle.

FAQ 🔎

• What did the nine AI models predict about bitcoin’s price? Nine artificial intelligence models forecast that bitcoin could reclaim $100,000 sometime between mid-2026 and early 2027, based on factors like halving cycles, institutional inflows, and macro liquidity.
• Do AI models expect bitcoin to fall below $60,000 first? Several AI forecasts anticipate a brief dip below $60,000 during 2026 before a recovery, while others argue strong support in the $60K–$65K range may hold.
• Which AI models were included in the bitcoin forecast experiment? The predictions came from Grok 4.20, Claude Sonnet 4.6, Kimi K2.5, ChatGPT 5.3 Instant, Mistral LeChat, Venice.ai, Pi AI, an Openclaw instance using Claude Haiku 4.5, and Qwen 3.5 Plus.
• Why do AI models think bitcoin could return to $100,000? Most forecasts cite the post-halving supply cycle, institutional demand, and growing adoption as key drivers that could push bitcoin back toward six figures.

Log in to Coinbase next tax season, and your tax documents might no longer arrive by mail.

Under a new IRS proposal, crypto exchanges could be required to file Form 1099-DA electronically. This form reports digital asset trades, and could refuse to do business with customers who decline to provide it.

The comment period closes May 5, and if finalized, the rule would shift crypto tax reporting from the mailbox to the platform.

This is not a tax cut or a rollback of reporting requirements. Brokers still send identical information to the IRS regardless of how they deliver forms to customers. The proposal permits exchanges to make app-based delivery mandatory.

The result: millions of crypto users would receive tax forms exclusively through email and in-app document centers, with no paper backup and no right to switch back.

The twist: crypto taxes are not getting lighter. They are getting quieter.

What actually changes

The IRS proposal creates an alternative electronic delivery process for Form 1099-DA.

Under current rules, brokers must offer customers paper forms. The proposal would allow exchanges to use streamlined consent, where customers agree to electronic delivery during account setup, and exchanges could terminate relationships with anyone who refuses.

Consent would likely appear as a pop-up with an “I agree” button, with language indicating the broker may not continue servicing customers who decline.

Once customers consent, exchanges would not be required to let them withdraw that consent while remaining customers. The only guaranteed paper fallback would be a notice if email delivery fails, not the full tax document.

Delivery would happen via posting forms to an online document center with email notification or via a direct email attachment.

Exchanges must maintain access through Oct. 15 of the following year and retain prior statements for seven years. Undeliverable email triggers a physical notice within 30 days, but that is procedural, not a substitute for the mail cue many users expect.

The bigger enforcement shift

This proposal sits inside a larger compliance buildout.

Starting with transactions on or after Jan. 1, 2025, crypto brokers must file Form 1099-DA reporting gross proceeds.

Basis reporting, cost information needed to calculate gains and losses, phases in for certain transactions starting Jan. 1, 2026, only for covered assets acquired from and held with the same broker.

The enforcement math is significant. A Government Accountability Office report found that the IRS Automated Underreporter program identified potential underreported income in over 1 million cases, totaling $6.6 billion, in fiscal 2023.

Form 1099-DA feeds that match the matching engine. An IRS research paper found 6.5% of individuals, 17.4 million people, reported cryptocurrency sales from 2013 through 2021, while external surveys suggested 12% to 21% of US adults owned crypto.

The gap implies many holders never appear in sales reporting.

The Joint Committee on Taxation estimated digital asset reporting provisions would raise roughly $28 billion over 10 years. The IRS cites an internal study estimating that up to 75% of taxpayers with digital assets are noncompliant.

The electronic delivery proposal is not about easing burdens. It is about standardizing infrastructure for automated compliance.

What retail users would notice

The user experience shifts from annual paper envelopes to persistent digital workflows. Tax season becomes a document-center notification rather than a mailbox event.

For users accustomed to physical forms as their filing reminder, the shift creates new ways to miss deadlines.

Exchanges would integrate consent into onboarding or account settings, presented as routine platform terms. Email delivery relies on users maintaining current contact information and checking spam filters.

In-app document centers blend tax forms into notification streams that handle trade confirmations, security alerts, and promotions. The seven-year retention requirement means historical forms remain accessible, but only if users know to look for them.

Coinbase’s 2025 10-K reports 9.2 million monthly transacting users and $376 billion in assets on the platform. Other major exchanges have comparable scale.

If even a fraction of tax documents adopt mandatory electronic consent, the volume of tax documents moving exclusively through digital channels becomes substantial.

The enforcement gets more invisible

The critical distinction: this proposal changes how customers receive forms, not whether the IRS receives them.

Broker reporting to the government continues unchanged. An exchange that shifts to app-only delivery still files identical information with the IRS.

The IRS explicitly states that taxpayers must report digital asset transactions regardless of whether they receive Form 1099-DA. The agency emphasizes recordkeeping: taxpayers must maintain their own basis records to calculate gains and losses, especially during the phase-in when many forms will not include basis.

For 2025 transactions, brokers generally report only gross proceeds. Basis reporting begins in 2026 for certain assets held with the same broker from acquisition.

This creates a compliance gap where users need their own trade history exports even if they receive a form. The electronic delivery proposal makes accessing historical data more dependent on platform tools, such as document centers, CSV exports, and API access, rather than mailed statements.

From an enforcement perspective, the shift is efficient. Information returns are submitted to the IRS digitally regardless of the customer’s delivery method. Automated matching compares filings against broker reports without manual intervention.

Users who miss app-based notifications still face potential underreporter notices, penalties, and interest. The system becomes less visible to inattentive users while remaining fully visible to the IRS.

What happens next

The proposal is open for public comment through May 5, 2026. If finalized, it would apply to forms furnished on or after Jan. 1 of the calendar year following publication, meaning the earliest effect would be tax season 2027 or later.

Whether exchanges adopt mandatory electronic delivery is a business decision. The proposal creates permission, not a mandate. Some brokers keep paper options as customer service, while others view digital-only as operationally simpler.

Adoption rates will determine how many users face the “consent or lose access” choice.

Users should assume electronic delivery will become standard across major platforms once permitted.

Treat exchange email settings as critical tax infrastructure. Ensure contact information stays current. Enable document notifications. Check spam filters before Feb. 15, when forms are due. Download and back up trade history regularly, especially for transactions across multiple platforms where no single broker has complete basis information.

The broader context is global convergence toward standardized crypto tax reporting.

The OECD’s Crypto-Asset Reporting Framework is being adopted across jurisdictions. The EU’s DAC8 directive expands reporting to cover crypto assets. The US electronic delivery proposal fits within a multi-year buildout in which crypto’s informality premium shrinks toward the information returns of traditional securities.

Crypto tax reporting is not disappearing into apps to make compliance lighter. It is moving inside digital rails to make enforcement more automatic and harder to ignore.

The IRS is not cutting the paper trail. It lets the trail move from the mailbox to the platform, where broker copies still flow to the government, while customer copies become just one more notification in a crowded interface.