Bittensor Wallet Breach Leads to 8 Million Loss TAO Token Declines by 15

TAO of Bittensor, a decentralized AI project, has shut down its blockchain network due to a security breach that impacted multiple users’ wallets. On-chain analyst ZachXBT reported that the thefts were likely a result of leaked private keys, leading to the theft of over $8 million worth of TAO, approximately 32,000 tokens. This caused a significant 15% decrease in the token’s value, dropping from $281 to $234.

ZachXBT first noticed the unusual transactions and suggested that the breach could be linked to leaked private keys. The Bittensor community Discord administrator issued a statement, announcing that all transactions had been halted to prevent unauthorized processes while the situation is being investigated.

The last recorded block on Bittensor’s Explorer was three hours before the network shut down. Jacob Robert Steeves, co-founder of Bittensor Network, confirmed the shutdown and explained that the developers were addressing the issues to resolve them. The Bittensor team assured the community that the network was secure and focused on addressing the extent of the problem and the security breaches.

The Discord administrator, const [т, T], stated, “We are investigating what appears to have been an attack on the Bittensor wallets over the last 3 hours: […] All chains are paused until further notice.”

Following the incident, the TAO token’s price experienced a significant drop. Data from Taostats showed a nearly 15% decrease in the token’s value within a day, impacting the market. As of writing, the Opentensor Foundation, the organization behind the Bittensor protocol, has not released official information regarding the hack.

As the Bittensor developers work to address the vulnerability and investigate the attack, the community eagerly awaits further updates.