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The Bittensor blockchain suffered a major attack, causing a sharp 15% drop in its native crypto, TAO. The incident, which drained $8 million from a user wallet, forced developers to temporarily suspend the network as a precautionary measure.
TAO collapses following a spectacular $8 million theft
The attack on Bittensor, which occurred in the early hours of Wednesday, targeted multiple user wallets.
The biggest impact was on a single wallet, emptied of 32,000 TAO, or around $8 million at the time of the hack. This security breach instantly triggered a shockwave in the market, causing the TAO price to plummet from $281 to $237 within a few hours.
Ala Shaabana, co-founder of the Bittensor blockchain, promptly responded by announcing on X (formerly Twitter) that the blockchain was put into “safe mode”. This emergency measure allowed for block production to continue while freezing transactions, thus limiting the extent of the damage.
On-chain analysts, including ZachXBT, suspect a private key compromise as the primary attack vector.
Bittensor retaliates and reassures its community
In the face of this crisis, the Bittensor team acted swiftly and transparently. A principal member stated on Discord: “We are investigating and, as a precaution, have entirely suspended on-chain transactions until we obtain more information on the nature of this attack.”
On-chain data confirms the halt of operations around 23:00 UTC on July 2. Despite this setback, Bittensor maintains a strong position in the AI crypto ecosystem, with a market cap of $1.6 billion.
In summary, its innovative technology, which interconnects global machine learning models, continues to attract the interest of investors and experts in the crypto sector.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
