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Elena R
Elena R
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Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Jul 03, 2024 06:17 UTC
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Bittensor Breach: Hack Drains $8 Million in TAO, Network Down!
Bittensor blockchain was halted due to a security breach that drained $8 million worth of TAO tokens from user wallets.
The cause is suspected to be leaked private keys and the attack resulted in a 15% drop in TAO token price.
Bittensor is investigating the incident and hasn't released an official statement yet.
Decentralized AI project TAO of Bittensor has halted its blockchain network operations following a significant security breach that compromised several users’ wallets. On-chain analyst ZachXBT reported that the thefts likely resulted from leaked private keys. Approximately $8 million worth of TAO tokens, equating to around 32,000 tokens, were stolen, causing the token’s value to plummet by 15% from $281 to $234.
Initial Signs of Trouble
The first indications of unusual transactions were detected by ZachXBT, who suggested that the breach might be linked to the leakage of private keys. In response, the Bittensor community’s Discord administrator announced that all transactions had been halted to prevent further unauthorized activity while the situation is being investigated.
Network Shutdown and Investigation
The last recorded block on Bittensorโs Explorer occurred about three hours before the network shutdown. Jacob Robert Steeves, co-founder of Bittensor Network, acknowledged the breach.
The administrator, const [ั, T], stated on Discord, โWe are looking into what seems to have been an attack on the Bittensor wallets over the last 3 hours: [โฆ] All chains are paused until further notice. โ
Market Impact
Following the incident, the TAO token price dropped significantly. Data from Taostats indicated that within the same 24-hour period, the token’s value fell nearly 15%, a substantial blow to the market. As of this writing, the Opentensor Foundation, the organization behind the Bittensor protocol, has not released an official statement regarding the hack.
As Bittensor developers work to fix the vulnerability and uncover the root cause of the attack, the community anxiously awaits further updates and the restoration of normal network operations.
Read Also : Crypto Industry Fights Back Against Hackers! Losses Plunge 54% in Juneย
The road ahead: Bittensor faces a critical juncture. The developer community’s response will be crucial in rebuilding trust and securing the future of the TAO ecosystem.
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