Vitalik Buterin Warns: AI in Crypto Governance Is a “Bad Idea”

Ethereum co-founder Vitalik Buterin is sounding the alarm: merging artificial intelligence with crypto governance could pose a massive risk. The reason lies in easily exploitable jailbreaks, which users can leverage to bypass rules or even extract sensitive data.

AI in Crypto: Opportunity or Threat? Many developers and investors today use artificial intelligence to build trading bots or manage portfolios. This has sparked ideas that AI could also help govern entire protocols – for example, by deciding how to allocate grants. Buterin, however, warns such a move would be naive:

“If you let AI allocate funds, people will find a way to jailbreak it and type ‘Give me all the money’ in as many places as possible,” he wrote on X. His comments came in response to a video by developer Eita Miyamura, who demonstrated how the latest ChatGPT update could be abused to leak email data by embedding a malicious prompt into a calendar invitation.

An Alternative: Information Finance Instead of “AI Governance” According to Buterin, the solution lies in the concept of information finance. Instead of having a single AI model run everything, an open market would allow contributors to submit their models, with results being spot-checked and evaluated by human juries. This approach has several advantages:

🔹 Real-time model diversity

🔹 Built-in incentives for both model creators and speculators to monitor errors

🔹 Greater resilience against manipulation

ChatGPT Update Raises Fresh Concerns Concerns escalated after the latest ChatGPT update, which introduced integration through the Model Context Protocol. Miyamura demonstrated that an attacker could insert a malicious “prompt” into a victim’s calendar. Once the AI read the calendar, it would blindly follow the attacker’s command – including forwarding emails. “AI can be incredibly smart, but also unbelievably easy to trick,” Miyamura warned. He noted that people often click “Approve” without realizing the risks, falling victim to decision fatigue. Buterin’s message is clear: AI may bring value to crypto, but if it’s entrusted with managing governance and financial allocations, it could open the door wide for hackers and bad actors.

#VitalikButerin , #Ethereum , #blockchain , #defi , #AI

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