Bittensor Breach 8 Million in TAO Stolen Network Offline
**Story Highlights**
– The Bittensor blockchain was paused following a security breach that resulted in the theft of $8 million worth of TAO tokens from user wallets.
– The breach is suspected to be due to leaked private keys, leading to a 15% drop in the TAO token’s value.
– Bittensor is currently investigating the incident and has yet to issue an official statement.
The decentralized AI project TAO by Bittensor has suspended its blockchain network operations after a severe security breach compromised multiple user wallets. According to on-chain analyst ZachXBT, the thefts likely occurred due to leaked private keys. Approximately $8 million worth of TAO tokens, equating to around 32,000 tokens, were stolen, causing the token’s value to drop by 15% from $281 to $234.
**Initial Signs of Trouble**
ZachXBT first detected unusual transactions and suggested that the breach might be linked to leaked private keys. In response, the Bittensor community’s Discord administrator announced that all transactions had been paused to prevent further unauthorized activities while the situation is investigated.
**Network Shutdown and Investigation**
The last recorded block on Bittensor’s Explorer was noted about three hours before the network shutdown. Jacob Robert Steeves, co-founder of Bittensor Network, confirmed the breach, stating:
“We have contained the attack and put the chain into safe mode (blocks producing but no transactions are permitted). We’re still mid-investigation and are considering all possibilities. Stay tuned.”
Discord administrator const [т, T] added,
“We are looking into what seems to have been an attack on the Bittensor wallets over the last 3 hours: […] All chains are paused until further notice.”
**Market Impact**
Following the breach, the TAO token price fell significantly. Data from Taostats showed a nearly 15% drop within the same 24-hour period, marking a substantial blow to the market. As of now, the Opentensor Foundation, which is behind the Bittensor protocol, has not released an official statement regarding the hack.
As Bittensor developers work to address the vulnerability and determine the root cause of the attack, the community eagerly awaits updates and the resumption of normal network operations.
**Read Also**:
– Crypto Industry Fights Back Against Hackers! Losses Plunge 54% in June
Bittensor faces a critical juncture, and the developer community’s response will be vital in rebuilding trust and securing the future of the TAO ecosystem.
**Tags**: Hack