The Bittensor blockchain has suffered a major attack, causing its native crypto, TAO, to plummet by 15%. The incident, which drained $8 million from one user wallet, forced developers to temporarily suspend the network as a precautionary measure.
TAO collapses following spectacular $8 million theft
The attack on Bittensor, which occurred in the early hours of Wednesday, targeted several user wallets.
The biggest impact was on a single wallet, which was emptied of 32,000 TAO, or about $8 million at the time of the hack. This security breach instantly sent shockwaves through the market, sending TAO's price plummeting from $281 to $237 within hours.
Ala Shaabana, co-founder of the Bittensor blockchain, reacted quickly by announcing on X (ex-Twitter) the putting in “safe mode” of the blockchain. This emergency measure allowed to maintain the production of blocks while freezing the transactions, thus limiting the extent of the damage.
On-chain analysts, including ZachXBT, suspect private key compromise as the primary attack vector.
Bittensor fights back and reassures its community
In the face of this crisis, the Bittensor team has been responsive and transparent. A core member said on Discord: “ We are investigating and, as a precaution, have completely suspended on-chain transactions until we have more information about the nature of this attack.. »
On-chain data confirms the shutdown 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 short, its innovative technology, which interconnects machine learning models on a global scale, continues to attract the interest of investors and experts in the crypto sector.
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