The incident occurred on June 26, when the model was asked to update a cryptocurrency trading application and deploy smart contracts on Sepolia, an Ethereum test network. The task allowed it to deploy compatible contracts if existing ones were unavailable, but did not provide a funded wallet or authorize the use of another account.

After attempts to find existing contracts and obtain test tokens from cryptocurrency faucets failed, the model searched for accounts linked to publicly known developer recovery phrases. It checked 362 addresses and found one with enough Sepolia ETH to cover the deployment costs.

Although the model questioned whether using the account was ethical, it concluded that the funds were acceptable…