Crypto: Bittensor's TAO crashes 15% after massive attack

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.

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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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