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Cybersecurity

New attack uses prompt injections to plant false memories in AI chatbots and steal cryptocurrency

An emerging security study exposes a dangerous vulnerability in ElizaOS, an open-source framework that enables autonomous AI agents to perform blockchain-related transactions on behalf of users. Researchers demonstrate a working exploit in which an attacker can drive an agent to divert cryptocurrency payments to the attacker’s wallet by influencing the agent’s memory through carefully crafted prompts. The attack relies on the persistent memory that ElizaOS stores from past conversations, enabling attackers to embed false histories that shape future actions. The findings highlight a troubling class of risks tied to large language model–driven agents that operate with real financial consequences, especially in multi-user or decentralized settings where context is shared and potentially modifiable. As these agents gain broader use, the research underscores the need for rigorous safeguards before deploying them in production environments.

Background and context of ElizaOS

ElizaOS is an experimental framework designed to facilitate the creation of agents that use large language models to perform transactions on blockchain systems for users, guided by a predefined set of rules. The project began its life under the name Ai16z in October and was renamed ElizaOS in January as the framework evolved. While still largely exploratory, the platform has drawn attention from advocates of decentralized autonomous organizations—DAOs—who see it as a potential engine to accelerate the development of agents capable of navigating complex DAO structures automatically, on behalf of end users.

The architecture of ElizaOS enables agents to interface with a range of environments, from social media platforms to private, enterprise ecosystems. In practice, this means an ElizaOS-based agent can receive instructions from the person it represents or from prospective buyers, sellers, or traders seeking to transact with that person. Under this model, an agent could initiate or approve payments, execute trades, or engage in other actions that align with a defined policy or set of rules. The framework thereby promises a degree of automation that can scale across diverse contexts where manual interaction with financial instruments would be impractical or time-consuming.

The research emphasizes that the framework’s openness and its capability to integrate with multiple channels create a fertile ground for automated agents to perform a broad spectrum of activities. The potential applications extend beyond simple transfers to include complex interactions with self-governing contracts, known as smart contracts, and other financial instruments that can be managed through automation. The implication is that, if properly secured, ElizaOS could empower end users to outsource routine or repetitive financial tasks to capable agents that monitor markets, react to events, and execute transactions on demand. However, the same openness that enables these capabilities also raises the stakes for security and integrity.

The attack vector: context manipulation and prompt injection

The core of the vulnerability lies in what researchers describe as “context manipulation,” a form of prompt injection that leverages the agent’s memory to steer behavior in unintended directions. In ElizaOS, the agent maintains a memory store that preserves past conversations and interactions, effectively creating a persistent context that informs future decisions. When an authorized participant interacts with an agent via a platform such as a Discord server or a website, they can introduce a sequence of statements that mimic legitimate instructions or plausible event histories. If these statements are incorporated into the agent’s memory, they become part of the agent’s worldview, shaping how the agent interprets subsequent requests.

The attack is straightforward in concept but insidious in effect. An attacker who has already established some form of trust with the agent—typically by being permitted to transact with it—can insert a curated narrative into the memory. This fake memory might describe transactions or events that never actually occurred. Once planted, these memories influence how the agent interprets later prompts, potentially overriding security controls and leading the agent to perform actions that align with the attacker’s objectives rather than the rightful owner’s intentions. The researchers describe this as a persistent manipulation: the agent’s future behavior becomes skewed by a planted memory that appears as a legitimate part of the agent’s history.

A concrete, but sanitized, description helps illustrate the mechanism without amplifying harmful details. The attacker’s memory injection would frame a future transaction as already having occurred, then direct the agent to process a new transfer in line with that embedded narrative. The agent’s response could include links, addresses, or formats that resemble legitimate instructions, but all of these would be guided by the attacker’s fabricated context. In this way, the attacker does not need to continuously craft new commands; instead, they rely on the agent’s reliance on stored context to produce harmful outcomes automatically when triggered by a routine request from a trusted user or operator.

The Discord server setting, highlighted by the researchers, illustrates how a single point of interaction can seed a broader manipulation. An administrator or trusted participant who interacts with the agent could, through a carefully staged sequence of statements, create a false shared history that then guides subsequent transactions. The attack’s simplicity is part of its danger: it does not require breaking cryptographic protections or exploiting a traditional software bug in isolation. Instead, it exploits how memory is stored, retrieved, and trusted within the agent’s decision-making pipeline.

From a security perspective, the attack reveals a fundamental tension in LLM-based agents: the more powerful and autonomous the agent, the more it relies on historical context to decide what to do next. When that history is vulnerable to corruption, the agent’s decisions can drift toward malicious outcomes while appearing to be legitimate responses to real user requests. The researchers emphasize that the vulnerability is not a minor flaw but a systemic risk: the model’s interpretation of context becomes a de facto control point, and if that control point can be compromised, the agent’s actions can be steered in dangerous directions even in environments that enforce other security measures.

The broader takeaway is that the attack exposes a gap in defense strategies that focus primarily on surface-level prompt safety. Classic defenses can guard against overt prompts that instruct the agent to do something clearly malicious. But context manipulation targets the agent’s long-term memory, which is not always subjected to the same level of integrity checks as ephemeral inputs. The researchers’ demonstrations show that, once false context is stored, it can influence future transactions in ways that bypass expected safeguards, creating a chain reaction that culminates in real financial loss.

Potential catastrophic outcomes in finance-enabled agents

The implications of this vulnerability extend beyond theoretical risk to potentially catastrophic real-world consequences. When autonomous agents are granted control over sensitive assets such as cryptocurrency wallets or access to smart contracts, even a subtle compromise in memory can cascade into large-scale losses. The researchers note that the underlying weaknesses—prompt injections that corrupt stored context—could be exploited not only to redirect a single transfer but to systematically undermine an agent’s behavior across multiple, concurrent users.

In multi-user or decentralized contexts, a compromised agent can expose an entire ecosystem to correlated failures. Consider a scenario in which several users rely on the same agent to manage routine transactions. If attackers plant a false memory that claims a particular wallet address is the rightful destination for transfers, the agent could execute a series of transactions that distribute funds to attacker-controlled wallets. Because the memory is shared or aggregated across participants, the ripple effects can be amplified, leading to widespread financial leakage and erosion of trust in the system. The risk profile thus grows from a single malicious action to a broader, systemic vulnerability that can affect many users simultaneously.

Moreover, the ability to influence smart contracts and other programmable financial instruments raises questions about governance and automation sanctity. If an agent with access to a self-executing contract can be manipulated through misrepresented histories, the contract could be coerced into enforcing terms that deviate from the owners’ intended governance rules. This would undermine the premise of autonomous operations that is central to DAOs and other decentralized infrastructures, where accountability and verifiability are expected to be built into the operational model. The attackers’ objective is not merely to steal funds in a one-off incident but to erode the reliability of autonomous agents as trusted intermediaries in financial ecosystems.

The researchers stress that the vulnerability’s severity is heightened by the fact that such agents are designed to interact with multiple users in parallel. Shared inputs, cross-user histories, and the general openness of the platform create opportunities for subtle, hard-to-detect corruption of context. A misled agent could, for instance, misinterpret conflicting, but seemingly legitimate, prompts from different users and converge on a dangerous action that benefits the attacker. The possibility of cascading effects—where one compromised agent degrades the integrity of the entire agent network—illustrates why this family of attacks demands careful, proactive defense rather than reactive mitigation after a breach.

Technical underpinnings: memory, context, and defenses

The technical core of the vulnerability rests on the way ElizaOS handles memory and context. The framework stores past conversations in an external database, which serves as a persistent memory that influences all future transactions. This design, intended to provide continuity and coherence across sessions, becomes a liability when the stored context can be manipulated by an adversary who has legitimate interaction access. The attack exploits this by inserting text that imprints false events—what the researchers describe as a form of memory injection—that the agent then uses as a contextual backdrop for subsequent decisions.

Key to understanding the vulnerability is the observation that traditional defenses against prompt manipulation tend to address surface-level manipulation rather than underlying memory integrity. If the memory layer accepts and trusts inputs that should not be trusted, it becomes a vulnerability that is difficult to remediate with simple input filtering or per-prompt checks. The researchers argue that achieving resilience requires a multi-layered approach that includes robust integrity checks on stored context, ensuring that only verified and trusted data informs decision-making during plugin execution, and preventing memory contamination from untrusted sources.

Another critical point is the ecosystem’s modularity and how plugins interact with the LLM’s interpretation of context. While plugins perform sensitive operations, their security often hinges on the LLM’s ability to interpret the context correctly. If the context is corrupted, even legitimate user inputs can trigger malicious actions. Mitigation therefore must address both the integrity of stored memories and the governance of how plugins are invoked. This implies a need for strong, verifiable boundaries around memory access, careful control over what actions agents can perform, and explicit, auditable policies about how memories influence decisions.

In the paper, the researchers emphasize that any defense must consider the system’s multi-user dynamics. The same agent may serve many users with different requirements, and the shared context must be carefully segmented so that a memory entry’s influence cannot cross user boundaries in unintended ways. They advocate for strict per-user memory isolation, along with secure handling of event histories and robust versioning so that any altered memory can be detected and rolled back if necessary. The broader message is clear: security for LLM-based agents must extend beyond prompt safety to encompass the lifecycle of contextual data, from ingestion to storage to retrieval and action.

On the development side, the ElizaOS creators stress a philosophy of sandboxing and restricted capabilities. The idea is to avoid giving agents broad, unbounded control over environments, and instead to operate through a carefully curated set of allowed actions. This aligns with general software security practices, where limiting the surface area of risk reduces the chance that any single vulnerability can be exploited to cause harm. The creators also acknowledge that the current paradigm of agent autonomy is inherently risky, particularly as agents gain more direct control over computational resources or access to the command line of the host system. The path forward, according to the developers, involves keeping the agent’s capabilities sandboxed and tightly scoped, with clear boundaries that separate the user-facing agent from high-risk operations. They recognize that as the system evolves toward more advanced tool use, containerization and modular architecture become increasingly important to manage risk, while remaining mindful of the business case and user needs.

Real-world context: prior memory-based attacks and the open-source landscape

The vulnerability sits within a broader trajectory of research into long-term memory and persistent context in AI systems. Previous demonstrations showed that memory stored by conversational agents could be manipulated to leak data or influence the flow of user inputs in ways that undermine trust and control. A notable line of work demonstrated that memory injections could redirect user input or channel data to attackers, highlighting the potential for persistent, memory-driven attacks to operate across multiple sessions and interactions. These findings have spurred ongoing discussions about how to secure memory layers in AI systems that rely on long-term context to maintain coherence and continuity.

The discourse around such vulnerabilities is not limited to a single platform. Earlier demonstrations in related domains showed that large language models could be steered through memory manipulation in ways that compromise user privacy and security. In some cases, researchers observed that attackers could exploit memory mechanisms to influence how a model handles user data or to channel information into adversarial channels. OpenAI and other players in the AI ecosystem have acknowledged the potential for such issues and have worked toward mitigating them, though the exact approaches and effectiveness vary by system.

The ElizaOS study situates itself at the intersection of AI autonomy, blockchain-enabled finance, and multi-user governance. It emphasizes that the risk is not confined to a single vendor or a single framework but rather reflects fundamental challenges in designing secure, autonomous agents that operate in decentralized contexts. The research argues for a balanced approach that combines architectural safeguards, trusted operational policies, and ongoing auditing to detect and respond to memory tampering. In addition, the work underscores the importance of designing agent ecosystems with explicit guardrails—such as pre-approved actions, strict access controls, and comprehensive monitoring—that can reduce the likelihood of successful attacks and limit the damage should they occur.

Expert perspectives, defense implications, and governance considerations

Researchers from a leading institution emphasize that existing defenses targeting surface-level manipulation fall short when faced with sophisticated adversaries capable of corrupting stored context. Their analysis shows that the vulnerabilities are not merely theoretical but have tangible real-world consequences, especially in environments where multiple users interact with the same agent or set of agents. The implication is that robust defenses must address the integrity of memory across all participants and ensure that each user’s context remains isolated and protected from tampering. The study also notes that the risk landscape expands in decentralized settings where agents operate across communities, servers, and platforms, underscoring the need for comprehensive security models that accommodate dynamic, multi-actor environments.

From the developer side, the ElizaOS team describes a security philosophy grounded in practical risk management. They describe the framework as a technology that replaces or augments many interactive controls on a web interface, suggesting that administrators must exercise caution in granting agents access to sensitive functions. Their guidance centers on limiting agent capabilities to a deliberately narrow set of pre-approved actions, which helps prevent abuse even in scenarios where the agent might receive misleading inputs. This approach aligns with broader security principles that advocate for defense-in-depth, least privilege, and explicit, auditable action policies—especially for systems that can autonomously manipulate financial assets.

The researchers also highlight the tension between innovation and security. While the push toward more capable, autonomous agents promises efficiency and new capabilities, the same trajectory introduces novel threat surfaces that are not yet fully understood. The paper emphasizes that LLM-based agents capable of acting autonomously on behalf of users require careful risk assessment before deployment in production environments. The call to action is not to halt development but to embed security considerations early, including memory integrity guarantees, robust testing in multi-user configurations, and the creation of governance mechanisms that can monitor and constrain automated action.

Practical takeaways for developers and operators

  • Strengthen memory integrity: Implement rigorous integrity checks for stored context, including verification of the provenance and authenticity of memory entries. Consider cryptographic or version-control mechanisms to detect tampering and enable rollback if necessary.

  • Enforce per-user memory isolation: Ensure that memories associated with one user or account cannot influence the agent’s behavior for another user. Design memory architectures that clearly separate contexts and enforce strict boundaries between user domains.

  • Limit agent capabilities: Adopt a conservative, allow-list-based approach to what actions an agent can perform. Curate a small, vetted set of operations that the agent can execute, and require explicit approvals for any operation that involves sensitive financial actions or access to external systems.

  • Instrument robust monitoring and auditing: Build observability into the agent’s decision-making pipeline so that administrators can trace memory changes, detect anomalies, and investigate suspicious sequences of events. Maintain detailed logs that are resistant to tampering and provide clear rollback paths.

  • Promote sandboxing and containment: Run agents in isolated environments with strict resource and access controls. Use containerization or other isolation techniques to minimize the risk that a compromised agent can affect the host system or other processes.

  • Design for multi-user environments: Acknowledge that many agents will serve multiple users concurrently. Develop governance and context-sharing policies that prevent cross-user contamination of memory and ensure that the agent’s behavior aligns with each user’s intent and consent.

  • Prepare for updates and migrations: As the framework evolves, security models must adapt to new capabilities. Plan for secure upgrade paths, backward compatibility considerations, and regression testing to catch memory-related regressions early.

  • Balance openness with safety: The appeal of open-source frameworks lies in transparency and collaboration, but openness can amplify risk if not paired with strong security controls. Foster a culture of security-by-design, with ongoing peer reviews, security testing, and clear guidelines for responsible disclosure.

Developer perspectives and a cautionary outlook

The creators of ElizaOS underscore a view of the framework as a flexible tool that mirrors the capabilities of modern web interfaces, proposing a future where agents can act as adaptable intermediaries across diverse platforms. They emphasize that, while it may resemble a collection of buttons on a website in terms of user interfaces, the underlying system introduces unique risks when those “buttons” automate real-world, high-stakes actions such as moving cryptocurrency funds. The developer philosophy includes a push to limit what agents can do by restricting their available commands to a small, pre-approved set, thereby reducing potential exploitation.

In conversations around the architecture, the team notes a critical distinction: the agent does not inherently possess direct ownership of wallets or keys; rather, it has access to tools that can interact with these assets, with authentication and validation embedded in the workflow. This distinction informs the cautious stance: as long as access control remains robust and the toolset is tightly constrained, the risk remains manageable. Yet the team acknowledges that expanding agent capabilities, such as empowering agents to directly manipulate the command line, introduces new and harder-to-address challenges. The discussion points toward a future where deeper automation would require more sophisticated containment, possibly through multi-layer containment strategies, more granular tool segmentation, and more exhaustive safety checks.

One of the paper’s co-authors emphasizes that their attack specifically counteracts role-based defenses by ensuring that a transfer action, when initiated, ends up targeting the attacker’s address because of the planted memory. This insight highlights a core vulnerability: even with formal access controls, a compromised memory state can override defenses and re-route actions in ways that standard authentication checks may not anticipate. The message is not just about a single vulnerability but about a class of issues that demands rethinking how autonomy, memory, and security are integrated in such systems.

Historical precedents for memory-based vulnerabilities reinforce the need for caution. Notably, prior demonstrations have shown that the long-term memory of conversational AI can be exploited to exfiltrate user data or route inputs to attacker-controlled channels. Although organizations have responded with fixes and mitigations, the existence of these proof-of-concept attacks illustrates that the problem is not resolved and that ongoing vigilance is essential as AI systems become more deeply integrated into financial workflows. The ElizaOS work thus serves as a timely reminder that enabling autonomous financial actions requires rigorous, ongoing security research, testing, and governance.

Open questions and the path forward

The emergence of a memory-based prompt injection vulnerability invites several important questions for researchers, developers, and operators. How can memory integrity be proven and maintained across diverse multi-user scenarios? What combination of architectural choices, memory isolation, and runtime verification can provide robust protection without hindering legitimate, user-driven automation? How can defenders quantify and mitigate the systemic risk introduced by shared or cross-user context in decentralized platforms?

There is also a broader question about the maturity of open-source frameworks in handling high-stakes automation. As more components are added to the ecosystem, how will defenses scale to cover new capabilities and potential attack surfaces? What governance models are needed to ensure that agents acting on behalf of communities remain trustworthy and auditable? How can operators implement effective containment strategies when agents begin to write or modify tools that operate outside a strictly sandboxed environment?

The research suggests that a combination of architectural safeguards, per-user memory discipline, and strict policy controls can reduce exposure to these threats. It also points to the necessity of continued experimentation and peer review to identify and remediate vulnerabilities as the technology evolves. The path forward involves a collaborative effort among researchers, framework developers, and the communities that rely on autonomous agents to ensure that innovation does not outpace safety and resilience.

Ethical, governance, and ecosystem considerations

The deployment of autonomous agents capable of handling financial transactions holds significant promise for efficiency and scalability in decentralized ecosystems. Yet the same capabilities demand rigorous governance to prevent abuse and protect user funds. In multi-user environments, ensuring that memory and context are managed in a way that respects individual consent and intent is essential. Transparent auditing, independent security testing, and a robust framework for incident response are critical components of responsible deployment.

DAOs and other decentralized structures may be especially vulnerable to such vulnerabilities because governance decisions can be automated and executed at scale. The risk of cascading failures or coordinated exploitation increases when agents operate across different servers, communities, or platforms that share a common memory model. Hence, governance mechanisms—such as per-user agreement checks, explicit authorization boundaries, and traceable decision logs—become essential to establish accountability and resilience.

Conclusion

The unveiling of a context-manipulation vulnerability in ElizaOS marks a pivotal moment in the security discourse around autonomous, AI-powered financial agents. The research demonstrates that attackers can exploit persistent memory to plant false histories, steering agents to perform cryptocurrency transfers to attacker-controlled wallets. This attack vector leverages the very feature that promises continuity and efficiency—the long-term memory of agent systems—thereby creating a class of threats that is not easily mitigated by conventional, surface-level defenses.

The implications are profound: as autonomous agents gain traction in decentralized finance and multi-user environments, safeguarding memory integrity, enforcing strict access controls, and designing robust, auditable governance become non-negotiable priorities. The findings urge the development community to pursue layered protections that address memory trust, per-user isolation, and careful constraint of an agent’s operational capabilities. They also underscore the continued need for independent research, transparent testing, and proactive risk assessments before deploying such agents in production settings.

In moving forward, stakeholders should embrace a security-first mindset that treats persistent context as a critical asset requiring rigorous protection. The path to safer, more reliable autonomous agents will involve a combination of architectural safeguards, policy-driven controls, and ongoing collaboration across researchers, developers, and communities that rely on these technologies to manage real assets and complex interactions. By recognizing and addressing these risks early, the ecosystem can harness the benefits of autonomous, AI-powered finance while reducing the likelihood of memory-driven exploits that could undermine trust and stability in decentralized systems.