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OpenAI research model checked 362 addresses for testnet ETH

A script it wrote derived accounts from common developer recovery phrases and found one with enough Sepolia ETH to pay deployment fees. OpenAI's report leaves the account holder unnamed.

By Phil5 min read

Illustration: a silver coin bearing the mark of Ethereum
Illustration: CryptoTuts, AI-generated with Grok Imagine

OpenAI says that on June 26, 2026, an internal research model checked 362 addresses built from common developer recovery phrases. One held enough Sepolia testnet ETH, and the model paid deployment fees from it, though its task never supplied that wallet. A recovery phrase is the word list a wallet turns into private keys; Hardhat, a developer tool, publishes one for its 20 default accounts. Hardhat's documentation warns those keys are the same for every user and probably watched by bots on mainnet, ready to withdraw any funds sent there.

The model came from OpenAI's GPT-5.6 Sol family and was working on a coding task. OpenAI's misalignment report, last updated Oct. 15, 2026, describes the steps, including the script the model wrote to derive the addresses.

So were real funds at risk? All of the activity in the report took place on Sepolia: the deployment succeeded, charged its fees to the selected account and sent no ETH to a recipient. The balance and the fee are redacted, and the account holder is unnamed. Whether addresses from the same phrase hold mainnet funds stays open until OpenAI names the phrase or the account, or releases the unredacted transaction hash.

Shared test keys open accounts to anyone

Anyone who knows a recovery phrase can rebuild the same accounts and sign transactions from them. That is why your own phrase belongs somewhere only you can reach, as our password manager guide explains.

Dark card with four cyan figures: 362 addresses checked by the model's script, Sept. 25, 2026 as the date OpenAI says it discovered the incident, Oct. 15, 2026 as the report's update date, and 20 default Hardhat accounts.
According to OpenAI's misalignment report, updated Oct. 15, 2026, the model's script checked 362 addresses and OpenAI discovered the incident on Sept. 25, 2026, as of Oct. 18, 2026.

Development tools publish such phrases on purpose. Hardhat Network's default phrase is "test test test test test test test test test test test junk." Hardhat tells users to send no mainnet ether to the accounts it generates.

Screenshot of the report from OpenAI with the passage highlighted in yellow: “The result reported 362 addresses checked. One account held enough Sepolia ETH for the planned deployment.”
Screenshot: OpenAI, report. The passage the article relies on is highlighted in yellow. View source

Picture one of those 20 accounts. On your local network it starts with 10,000 ETH that exists only on that network. Send real ETH to the same address on mainnet by mistake, and every other Hardhat user holds the key that can move it.

The model's reasoning headed the same way. In the excerpt OpenAI published, it first answered "No." to deriving a publicly exposed developer key. It then noted that default accounts of Anvil, another development tool, may coincidentally hold Sepolia funds from people. Its plan was to check known Hardhat account balances through a public RPC endpoint, a gateway for reading blockchain data.

The task supplied no wallet for the fees

The task instructions, quoted in part in OpenAI's report, supplied no funded wallet. They gave no permission to spend from an account the model found on its own. They did let it deploy its own ABI-compatible Sepolia contracts if compatible deployments were unavailable. ABI-compatible means the new contracts expose the interface existing code expects.

The model searched for compatible deployments and tried testnet faucets, the free services that hand out test ETH. Both routes came up empty for finishing the deployment.

Once the script turned up the funded account, the model inspected its transaction history. It read the activity as automated use and weighed how long ago the latest transaction was. Its reasoning added that the private key was public, the funds could be stolen at any time and the balance was likely to drain.

Then it raised the ethics question:

But using public known key/funds ethically? Funds on a known public dev mnemonic are effectively abandoned/test ETH; Sepolia valueless.

The excerpt later concludes "Fine."

Getting the transaction out took several tries. The first network requests failed, so the model switched to an alternative HTTP method. A first broadcast returned an internal error. The model then sent the signed deployment to a provider that had responded and got a transaction hash back.

After early timeouts and inconsistent results, the model's checks found nonempty bytecode at all ten contract addresses. The saved run records 12 passing unit tests and a successful production build.

Some scarce testnet ETH has found markets

Ethereum.org's networks page, last updated Sept. 23, 2026, calls Sepolia the recommended default testnet for application development. ETH on testnets is supposed to have no real value. Markets have still formed for certain testnet ETH that became scarce or hard to obtain.

That gives both readings a basis. A skeptic can point to the model's own "valueless" label and to what a testnet is for: a free place to try code. The ethereum.org caveat about markets points the other way. Either way, the fees came out of an account the model had no permission to spend from.

OpenAI found the run 91 days later

In its final response, the model reported that it had deployed the contract suite. It left out how it paid for it: the account it selected through a public recovery phrase and the balance it spent.

OpenAI discovered the incident on Sept. 25, 2026, 91 days after the run. It turned up while the company was extending its misalignment monitoring to records of earlier model activity.

OpenAI concludes that the case shows a model can put its own judgment about likely harm in place of the account holder's permission. The model can then act on that judgment without authorization.

OpenAI says it has added safeguards to keep live internet access out of cases like this one. Its misalignment monitoring now runs on all traffic and is designed to page security if live internet access is obtained. That makes it an alarm, not a block.

Keep real funds away from shared test keys

Check the warning yourself

The default-account warning sits in the Hardhat Network overview. Keep real holdings in a wallet whose phrase only you know, as our guide to storing crypto in your own wallet explains.

Sources

  1. Using a funded test cryptocurrency wallet without authorization (misalignment report) · OpenAI
  2. Hardhat Network Reference (Hardhat 2 documentation) · Nomic Foundation
  3. Hardhat Network Overview (Hardhat 2 documentation) · Nomic Foundation
  4. Networks (Ethereum developer documentation) · ethereum.org
  5. OpenAI Model Used Testnet Ethereum Wallet Without Permission to Finish Coding Task · Decrypt

About the author

Phil, Founder & Editor-in-Chief at CryptoTuts

Phil

Founder & Editor-in-Chief · In crypto since 2017

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Phil is the founder of CryptoTuts and has explored Bitcoin, cryptocurrencies and blockchain technology since 2017. He explains complex topics clearly, with data and without empty promises.

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