May 2025 - IRYS AI Programmable Blockchain Revolution Backdoor Rug Pull - $70k (Global)
IRYS AI claimed to be the first blockchain platform where data wasn’t just stored but made programmable—allowing users to write logic directly onto data for native onchain interaction by smart contracts and AI agents. It promised a revolutionary architecture with a multi-ledger system that validated data through a Submit Ledger before moving it to a Publish Ledger for long-term storage. Additional ledgers were advertised to support customizable storage durations, positioning IRYS as a data-first chain focused on flexibility, verifiability, and permanence.
The project also introduced the IrysVM, a supposedly high-performance, EVM-compatible execution layer designed to bring computation and storage under one system. According to its documentation, this would enable smart contracts to directly manage and enforce rules on programmable datasets, AI models, and inference proofs—eliminating the need for external oracles or databases. IRYS AI marketed this as a key innovation that would usher in a new era of decentralized AI automation.
To secure its network, IRYS AI promised a hybrid consensus model combining useful Proof of Work and staking. This model was touted as a way to ensure decentralization, prevent miner centralization, and maintain honest data storage. Prospective developers were encouraged to start building through the platform's tools and educational resources like the Irys Academy, which offered structured learning for both beginners and advanced blockchain users.
IRYS AI was a smart contract launched on May 10th, 2025. The contract was promoted on May 19th via Twitter/X.
Unfortunately, investigators have confirmed a backdoor in the token contract that allowed the designated `_taxWallet` to bypass standard permission checks, enabling the token deployer to drain user funds.
The scam was enabled by a backdoor in the token's smart contract that allows the designated `_taxWallet` to bypass standard allowance checks, effectively granting it unrestricted access to user funds. The deployer address `0xc4ce` assigned this privileged role to address `0x6233` in a setup transaction, which was later used to execute the Rug Pull. This exploit was deliberately built into the contract.
Losses were reported by TenArmor as $69.6k.
Roughly $69.6K was stolen in a single transaction, revealing to the wider community that the project had been maliciously engineered from the start. What was marketed as a cutting-edge blockchain for programmable data turned out to be a carefully disguised scam.
TenArmor posts a report, declaring the final transaction of the project as a "rug pull".
It appears that the original Twitter/X account was changed from username BSCIRYSAI to Use8BITAI.
It is unclear if any recovery will be possible. While the website remains online, the project has deleted their official Twitter/X account.
The project website appears to still be online. The individuals behind the project appear to have moved on to the launch of a new 8BIT AI project.
Further Analysis
IRYS AI was promoted as a groundbreaking blockchain platform enabling programmable, on-chain data interaction for smart contracts and AI agents. It introduced a multi-ledger architecture, the IrysVM execution layer, and a hybrid consensus model, positioning itself as a next-gen solution for decentralized AI and data storage. However, the project was exposed as a scam when investigators discovered a hardcoded backdoor in the token contract that allowed a designated wallet to bypass security checks and drain user funds. The deployer used this vulnerability to steal approximately $69.6K in a single transaction, revealing the malicious intent behind the project. Most have considered this a rug pull. Twitter/X is deleted while the website is still online.
How Could This Have Been Prevented?
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Sources/Further Reading
TenArmor - "Our system has detected a suspicious RugPull involving #IRYSAI @BSCIRYSAI on #BSC, resulting in an approximately loss of $69.6K." - Twitter/X (Dec 31)
Transaction Which Sets The Tax Wallet - BSCScan (Dec 31)
IRYSAI Smart Contract - BSCScan (Dec 31)
IRYSAI Smart Contract Created - BSCScan (Dec 31)
Old IRYSAI Twitter/X account, reported by TenArmor. (Dec 31)
DeRick34 - "Follow me back @BSCIRYSAI" - Twitter/X (Dec 31)
Styler Walker - "Are you looking for a marketing campaign? Lets collab!" - Twitter/X (Dec 31)
Farmer0009 - "Hey! It looks like a very high quality project. let’s do it work together. Send me a message please." - Twitter/X (Dec 31)
IRYS AI Homepage (Dec 31)
IRYS AI Telegram (Dec 31)
IRYS AI Core Features (Dec 31)
IRYS AI Learn Hub (Dec 31)
Rug Pull Transaction - BSCScan (Dec 31)
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