Bittensor

ZachXBT

Discord

The Bittensor blockchain team detected an attack on several user wallets, temporarily halting the system. Unfortunately, one wallet was drained of $8 million worth of the project’s TAO tokens. According to<a href="https://bittensor.com/scan" rel="nofollow noopener" target="_blank"> Bittensor’s block explorer</a>, the most recent block was confirmed approximately 7 hours ago. 
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 <img loading="lazy" decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXc9A-9bLBLdSb6lUfdZX46xjx3q9aCTdwPkjtz2BsAWh3MNRudUlFilEruf8sIbis2d0gvTdZjjfBWDyHelIIUnSN6RMn3u-sFrkabw3jPC04hRU-_56JNdd-u5VFuoNYLif2h4TV-Sd6umY4DzJbdAKwLp?key=k709ewnt9PqkFD7rnR-N_Q" alt="" width="1600" height="535">
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 Source: TAO’s block explorer.
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According to on-chain analyst ZachXBT, the announcement mentioned a possible connection between the thefts and leaked private keys. “Bittensor was halted due to additional thefts earlier today potentially as a result of private key leakage,” he explained in a Telegram update. 
<h2 class="wp-block-heading" id="bittensor-wallets-hacked-zachxbt">Bittensor&nbsp; wallets hacked –&nbsp; ZachXBT</h2> 
ZachXBT reports that the foundation’s decision to safeguard the network against future incidents was likely due to the theft of $8 million worth of TAO, which is equivalent to approximately 32,000 native Bittensor (TAO) tokens. 
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In June, ZachXBT also reported another Bittensor hack. He noted that “A TAO holder had $11.2M (28.2K TAO) stolen (https://x.taostats.io/extrinsic/3086433-0007) from them on June 1, 2024.” 
<blockquote> 
 The attacker bridged the stolen funds to Ethereum and has been selling TAO for ETH and USDC. As of now, they have 12.4K TAO ($5M) remaining and have been transferring USDC/ETH to Whitebit, HTX, &amp; Binance. 
 ZachXBT 
</blockquote> 
 
According to reports, investigations are ongoing into the attack, which is believed to have been caused by a leakage of private keys. As a precautionary measure, Bittensor has been put into “safe mode” to halt further transactions until more information becomes available. 
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 <img loading="lazy" decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXeUTjbEQ-rvp5ZRahXeUZuYIKNbPJxFFxjaZnYxzpFRGatcjx3TBULJ7Zui5ovltlLMfzO_5ZrudPhODhiLKGQohwN3FkldhhWh-U0ELupvwPX_-OvhDV9MU-IPQD4D87htAsH5TeSJQjYigCL57I5T45Jl?key=k709ewnt9PqkFD7rnR-N_Q" alt="" width="735" height="289">
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 Source: X – From TAO’s co-founder Ala Shaabana&nbsp;
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The purported decentralized AI project&nbsp; adds, “We are investigating, and in an abundance of caution, have recently fully halted transactions on-chain until there is more information available to us about the nature of this attack.” 
<h2 class="wp-block-heading" id="tao-market-performance">TAO market performance</h2> 
TAO prices dropped significantly, up to 15%, following the attack, but there was a slight recovery as core members reassured investors that measures were being taken to prevent future incidents. Bittensor core team member wrote on the project’s Discord channel that: 
<blockquote> 
 We are investigating, and in an abundance of caution, have recently fully halted transactions on-chain until there is more information available to us about the nature of this attack. 
 Bittensor. 
</blockquote> 
TAO fell by 13% following the hacking of TAO validators, which resulted in the chain being suspended for investigation. Bittensor (TAO) is currently valued at $236.10, representing a 1.0% increase from one hour ago. Today, the value of TAO is 16.8% lower than it was seven days ago.&nbsp; 
Cryptopolitan reporting by Florence Muchai

Bittensor’s TAO tanks 13% after a $8M crypto hack

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