Bittensor shuts down network after $8M wallet hack
Bittensor shuts down network after $8M wallet hack
Bittensor has suspended its network activity after a significant security breach resulted in the theft of $8 million worth of digital assets. The halt aims to contain the attack and secure the network.
On July 3, Bittensor experienced a security breach leading to the theft of 32,000 TAO tokens, valued at approximately $8 million.
According to CryptoPotato, the theft was first reported by on-chain investigator ZachXBT in his Telegram channel, who indicated the breach might have resulted from a private key leak. The compromised address "5FbW" was used to drain the assets. This incident follows a similar attack on June 1, where $11.2 million worth of TAO tokens were stolen.
The network shutdown was initiated by Bittensor's co-founder Ala Shaabana, who posted on X that the attack has been contained, but the investigation is ongoing.
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The Bittensor team assured users that their funds are safe despite the halt. The network is in "safe mode," where block production continues, but transactions are not permitted, minimizing further risks.
Private key leaks have become a significant concern in the crypto space, surpassing smart contract vulnerabilities as the primary method for such breaches. In 2023, over 55% of hacked assets were lost to private key leaks, reflecting a shift in hacker strategies towards easier targets.
The breach, which occurred on July 3, caused a significant drop in the value of the TAO, with a 15% decline observed after the attack. The incident underscores the ongoing vulnerabilities in the crypto sector and the need for enhanced security measures and protocols.
As the investigation continues, the crypto community is watching closely for updates and potential measures to prevent future breaches. The focus remains on securing networks and safeguarding user assets to foster trust and stability in the volatile digital asset market.
See also: Bitstamp announces suspension of payment services during US bank holiday
