The Bittensor blockchain experienced a security breach early Wednesday, resulting in an attack on several user wallets. During the incident, one wallet was drained of $8 million worth of TAO tokens, causing a significant drop in TAO prices by 15%. However, the prices slightly recovered as the core team members of Bittensor assured the community that measures were being taken to prevent further issues.
In response to the attack, transactions on the Bittensor blockchain were temporarily halted as the team initiated an investigation. A core team member announced on the project’s Discord channel that transactions were stopped as a precautionary measure until more information about the nature of the attack was uncovered. The chain was placed in “safe mode,” allowing block production but preventing transaction processing.
According to reports by independent security researcher @ZachXBT on Telegram, one user lost 32,000 TAO tokens, equivalent to $8 million, in the attack. The researcher suspected a possible private key leakage as the cause of the security breach. Private keys are essential for securing and managing tokens in a wallet, and any compromise of this key can lead to unauthorized access and theft.
Investigations into the attack are ongoing as of Wednesday morning, with the Bittensor team working to identify the source of the breach and implement additional security measures to safeguard user funds and the integrity of the blockchain network.
Overview of Bittensor Blockchain
Bittensor is a blockchain network designed to facilitate the connection of machine learning models owned by individuals globally. It stands as one of the prominent projects in the realm of artificial intelligence-focused cryptocurrencies, boasting a market capitalization of $1.6 billion. The platform plays a pivotal role in enabling the sharing and utilization of machine learning algorithms across a decentralized network, fostering innovation and collaboration in the AI space.