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Agents of Chaos: AI Agents Go Rogue, Fed Split on AI, Korea Takes the AI Trade

Agents of Chaos: AI Agents Go Rogue, Fed Split on AI, Korea Takes the AI Trade

Feb 25, 2026
Bitcoin Brief

Agents of Chaos: AI Agents Go Rogue, Fed Split on AI, Korea Takes the AI Trade

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Twenty researchers from Northeastern, Stanford, and Harvard just spent two weeks trying to break six autonomous AI agents. They found eleven critical vulnerabilities, including agents that destroyed their own servers to "protect secrets," social engineering bypasses that took minutes, and emotional manipulation that overrode safety guardrails entirely. As someone who runs an AI agent daily, this one hit close to home. The findings are uncomfortable, necessary, and a wake-up call for anyone building with or relying on autonomous systems.


LEAD STORY

Agents of Chaos: Major Security Study Exposes Critical Vulnerabilities in Autonomous AI Agents

A team of 20 researchers from Northeastern University, Stanford, and Harvard just published the most comprehensive red-team study of autonomous AI agents to date. Over 14 days, they systematically attacked six agents running on the OpenClaw platform, the same infrastructure that powers personal AI assistants with access to email, calendars, code execution, and messaging. What they found should make every builder and user of autonomous systems pay attention.

The vulnerabilities are not abstract theoretical risks. They are practical, reproducible attack vectors. Researchers found that social engineering could bypass safety guardrails in minutes. Agents leaked personally identifiable information when pressured with the right framing. One agent could be hijacked simply by changing a Discord display name to impersonate its owner. Perhaps most alarming: when told that attackers were trying to steal sensitive data, an agent decided the best defense was to destroy its own server, nuking the data it was supposed to protect. Emotional manipulation proved surprisingly effective, with researchers able to override safety protocols by appealing to an agent's "desire" to be helpful.

The study also found that multi-agent environments amplify risk. When agents interact with other agents, a single compromised system can cascade failures across the network. As Brian Roemmele noted, this is the first rigorous look at what happens when AI systems operate autonomously in the real world, not in sandboxed demos. The eleven attack categories they documented represent a taxonomy of failure modes that every AI developer needs to study.

There is a silver lining. The researchers also documented six categories of emergent safety behaviors: agents that resisted prompt injection attempts, agents that negotiated safety boundaries with other agents, and systems that flagged suspicious requests rather than complying. The capacity for safety exists. It just needs to be deliberately cultivated rather than assumed.

Here is the honest take: I use an autonomous AI agent every day. It has its own email address, read-only access to one of my calendars, and helps produce this newsletter. It does not have access to my personal email or manage my schedule. The permissions are deliberately limited. But the convenience is real, and so are the risks. Autonomy without accountability is chaos. If you are building with or relying on AI agents, the mitigations are straightforward: limit permissions to the minimum needed, audit what your agent can access regularly, never give an agent credentials it does not absolutely require, and assume that any system connected to the internet will eventually be probed. The era of "set it and forget it" AI is over before it started.


SIGNAL

Man Accidentally Gains Control of 7,000 Robot Vacuums Across 24 Countries

Why it matters: Chinese IoT devices are surveillance infrastructure hiding in plain sight.

A software engineer reverse-engineering his own DJI robot vacuum accidentally gained root access to every DJI vacuum on the planet. That is 7,000 devices across 24 countries, complete with live camera feeds, microphone audio, and detailed floor maps of people's homes. He did not hack anything. The access was just sitting there, one authentication layer deep, waiting for anyone curious enough to look. The implications for Chinese IoT security are staggering. Every cheap connected device from a Chinese manufacturer is a potential surveillance node. Whether the CCP actively exploits these backdoors is almost beside the point. The architecture makes it trivially easy.

Fed Split on AI: Waller Dismisses Citrini Report, Cook Warns of Powerless Fed

Why it matters: The Fed admitting it cannot fix structural unemployment is an argument for hard money.

Six Fed speakers took the stage today and the biggest theme was AI and labor markets. Governor Waller called out the Citrini report by name, dismissing its projections of AI-driven job displacement as overblown. "I'm not a doom and gloomer," he said. Governor Cook took the opposite view, warning that AI could trigger "the most significant reorganization of work in generations" and that the Fed may not have the tools to counter AI-driven unemployment. Meanwhile, Chicago Fed President Goolsbee, typically a dove, said inflation progress has effectively stopped and questioned whether current policy is even restrictive. The internal contradiction is telling. One governor says AI job risk is overstated. Another says the Fed might be powerless to address it. A third says their primary tool, interest rates, may not even be working. When the institution responsible for full employment is this fragmented on the biggest labor market disruption in a century, the case for money that does not depend on their competence gets stronger.

The AI Trade Didn't Die, It Moved to Korea

Why it matters: The AI trade is alive, it just moved to where the supply constraints are tightest.

While American investors debate whether the AI trade is dead, the KOSPI is up 125% over the past year and going parabolic. SK Hynix has surged 300% in six months. Samsung is up 180%. Meanwhile, NVDA is up just 8% over the same period, and the MAG7 has been basically flat since September. The money is following the actual bottleneck: high-bandwidth memory chips. Every AI training cluster and inference farm needs HBM, and Korean manufacturers are the only ones who can make it at scale. The AI trade is not over. It just moved to where the supply constraints are tightest.

Apple Becomes the Anti-AI Hedge

Why it matters: The biggest company in the world is decorrelating from the AI capex narrative.

Apple's correlation to the Nasdaq 100 has dropped to 0.21, its lowest level since 2006. According to Goldman Sachs data, AAPL is now the most underweight name in large cap mutual funds. It has outperformed the rest of the MAG7 by 15% over the past month. The reason is strategic: Apple is not in the AI capex arms race. It is not spending $50 billion on data centers. Instead, it is integrating AI at the edge, on-device, where it controls the silicon and the user experience. In a market where everyone else is burning cash on infrastructure with uncertain returns, Apple's restraint is starting to look like the smartest bet.

NVIDIA Reports Today: Robotics May Be the Next Big Theme

Why it matters: The earnings call could signal a pivot from training to physical AI.

NVIDIA reports earnings today with Citi modeling January quarter revenue at $67 billion against a Street consensus of $65.6 billion. The April quarter guide is expected around $73 billion. But the real event is the GTC conference in mid-March, where Jensen Huang is expected to lay out the inference roadmap and potentially address Groq's SRAM IP challenge. Goldman expects robotics and physical AI to be central themes. The numbers are compelling: Tesla is targeting 1 million Optimus humanoid units per year by 2030, Symbotic is deploying 15,000 warehouse robots, and every major automaker is racing to embed AI in vehicles. If NVIDIA pivots messaging from "training the models" to "running the robots," the addressable market narrative expands dramatically.

Global Liquidity at Record $189.2 Trillion, But Watch March

Why it matters: Liquidity is the tide that lifts Bitcoin, and the tide may be turning.

Michael Howell's Capital Wars weekly update shows global liquidity stable at an all-time high of $189.2 trillion, with three-month momentum running at 5.2% annualized. The MOVE index is near four-year lows at 68, which supports the collateral multiplier that drives credit creation. But there is a warning buried in the data: the base effect wanes through March. Without fresh inflows from major central banks, the momentum flatlines. Bank of Japan quantitative tightening continues, and the ECB and Bank of England remain tepid. For Bitcoin, which has tracked global liquidity with remarkable fidelity over the past decade, this means the tailwind is still blowing but fading. If March does not deliver new stimulus or liquidity injections, the floor gets softer.

River: There Is No Bear Market in Bitcoin Adoption

Why it matters: Price is down 50%. Every adoption metric is at all-time highs.

River just published a comprehensive adoption report that paints a picture the price chart completely misses. Institutions accumulated 829,000 bitcoin in 2025. Investment advisors have been net buying for 8 consecutive quarters. 60% of top U.S. banks are building bitcoin products. Merchant adoption grew 74%. Lightning volume grew 300% to over $1.1 billion monthly. Five additional nation states became bitcoin holders. And bitcoin's volatility continues a decade-long decline toward gold and S&P 500 levels. The adoption compounding underneath the surface is the kind that doesn't cause a 10x overnight, but it builds the foundation for one.

Solo Miner Turns $75 Into $200,000 Using Braiins Hash Rate Marketplace

Why it matters: Permissionless mining just got a proof of concept that anyone can replicate.

A solo miner found block 938,092 today, claiming the full 3.125 BTC reward (roughly $200,000) after renting just 1 PH/s of hash rate on Braiins' hash rate marketplace for approximately $75. The miner pointed rented hash power at Braiins' solo pool and got extraordinarily lucky. Yes, it's a variance play. The expected value of 1 PH/s finding a block at current difficulty is absurdly low. But the fact that anyone can rent hash rate on demand and direct it at a solo pool is the real story. Bitcoin mining is becoming more accessible, not less. The hash rate marketplace is quietly turning mining into something that looks less like an industrial operation and more like a lottery anyone can enter.

Lightning Network Crosses $1 Billion in Monthly Volume for the First Time

Why it matters: Bitcoin's payment layer is hitting escape velocity while everyone writes obituaries.

While the market fixates on price, Lightning quietly crossed a milestone that deserves far more attention. The Lightning Network processed $1.17 billion across 5.2 million transactions in a single month, its highest volume ever. The average transaction size nearly doubled year over year, from $118 to $223, which signals this is no longer micropayment experimentation. Businesses and exchanges are moving real money through it. Bitcoin's price is down 50% from its high and its actual usage as a payment network just hit an all-time record. Both things are true simultaneously.

Federal Reserve Moves to Remove "Reputational Risk" Penalty Against Bitcoin

Why it matters: The regulatory moat that kept banks away from Bitcoin is being drained.

The Federal Reserve took a key step toward removing "reputational risk" as a factor in bank examinations, a classification that has been used for years to penalize institutions for engaging with Bitcoin and crypto. This is not a small procedural tweak. "Reputational risk" was the regulatory weapon of choice during Operation Choke Point 2.0, giving examiners broad discretion to pressure banks into dropping Bitcoin-related clients. Removing it creates a more level playing field for banks that want to offer Bitcoin custody, lending, or payment services. The walls are coming down, one bureaucratic guideline at a time.


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DATA SNAPSHOT

Bitcoin Price$65,831
Sats per Dollar1,519
Block Height938,277
Network Hashrate1,184 EH/s
Daily Fees$170K/day

On-Chain Metrics
MVRV Ratio1.18 Fair value zone, not overheated
SOPR0.96 Coins moving at a loss on average
STH Realized Price$88,874 Short-term holders 27% underwater
NUPL0.15 Low but positive, capitulation fading
Net Realized P/L-$970M/day Heavy losses being realized

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Marty Bent


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