Bittensor

ZachXBT

Discord

Gala

Decentralized AI project TAO of Bittensor has halted its blockchain network operations following a significant security breach that compromised several users' wallets. On-chain analyst ZachXBT reported that the thefts likely resulted from leaked private keys. Approximately $8 million worth of TAO tokens, equating to around 32,000 tokens, were stolen, causing the token’s value to plummet by more than 15% from $281 to $230.
<img src="https://lh7-us.googleusercontent.com/docsz/AD_4nXf0VmIOebOpG7Qz_tu9DLc9heZsTB1w3ghfDR2dpSFMfFpEbNSuzSgrv76hd_cnnGhD_jOw7Ci_SDBHL6xrqlwahBHR36ts7nfu4krIZMhe9Gs0-UpT2BkAw9f7MKE58HkU_lxtoIDZ3a4dnTHHBh_MsSs?key=o4Esg5QtsUdws3Y6ZC88Eg" width="588" height="556"> 
The first indications of unusual transactions were detected by ZachXBT, who suggested that the breach might be linked to the leakage of private keys. In response, the Bittensor community’s Discord administrator announced that all transactions had been halted to prevent further unauthorized activity while the situation is being investigated.
<h3 id="span-span-data-font-font-size-style-font-size-16px-network-shutdown-and-investigation-span-span">Network Shutdown and Investigation</h3>
The last recorded block on Bittensor’s Explorer occurred about three hours before the network shutdown. Jacob Robert Steeves, co-founder of Bittensor Network, acknowledged the breach. The administrator stated on Discord, “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.”
<h4>Market Impact</h4>
After the incidence, the <a href="https://www.coingabbar.com/en/price-prediction/tao-token-dives-14-as-bittensor-blockchain-halts-operations" title="TAO token price" class="f-link" rel="noopener noreferrer nofollow">TAO token price</a> saw a freefalling trend like most of the crypto coins. According to Taostats, within the same 24 hours the token’s value dropped by almost 15% which was a huge blow to the market. Opentensor Foundation, the company behind the Bittensor protocol, has not come out to address the hack.
Such incidents are especially damaging to the industry given that they reduce confidence in the young but promising field of cryptocurrencies. Due to the distributed and dispersed nature of blockchain projects, they are very susceptible to attacks, especially the use of compromised private keys. This is evident in the case of TAO where not only was a large sum of money stolen but also the community became panicked demonstrating how easily trust in digital currencies can be breached.
Such risks have to be avoided, thus, it is necessary to develop measures for the <a href="https://www.coingabbar.com/en/tag/blockchain" title="blockchain" class="f-link" rel="noopener noreferrer nofollow">blockchain</a> projects’ protection. The key activities include the checking of accounts at least once a year, safekeeping of private key, and the ability to respond to threats swiftly in order to safeguard the users’ properties. Furthermore, increasing users’ awareness of proper behavior that prevents the leakage of keys will also help to minimize the risk. In this case, the immediate action to stop the transactions was appropriate to avoid more fraudulent transactions and demonstrates the importance of readiness in handling security issues.
While, the developers at Bittensor try to address the underlying problem that led to the attack and fix the issue, people in the community continue to wait for more information on how the network can be brought back to its stable state. The consequences of this event will probably affect changes in the security measures within decentralized projects and the confidence of its users. This is a clear indication that the modern world still faces significant issues in the protection of blockchain solutions and that work in this field should be constantly carried out to improve the security of blockchain systems.
<h4>Conclusion</h4>
The TAO breach underscores the critical need for enhanced security measures in the crypto space. While the financial losses are significant, the impact on trust and market stability is equally profound. Moving forward, blockchain projects must prioritize security to protect users and maintain confidence in decentralized systems.
Also Read:- <a href="https://www.coingabbar.com/en/crypto-currency-news/gala-games-and-animoca-brands-partner-to-elevate-gala-token" title="Gala Games and Animoca Brands Join Forces, Surges GALA Token" class="f-link" rel="noopener noreferrer nofollow">Gala Games and Animoca Brands Join Forces, Surges GALA Token</a>

Bittensor Faces Security Breach $8M in TAO Tokens Stolen

Table of Contents

Coingabbar

Alte articole publicate pe 3 iul. 2024

Sentient Open-Source AI Secures $85M Seed Round

AI startups dominate the list of companies that have attained unicorn status in 2024

Billy Soars Towards 49,000% Rise Amidst Bitget Listing

Expert Analyzes Factors Behind Bitcoin Price Weakness and Predicts Positive Turnaround

Binance Responds to Confusion About Turkey’s New Cryptocurrency Regulation: Will Users Still Be A...

Reasons Why FET Price Plunged 25% This Week; Sell or HODL

Join our free newsletter for daily crypto updates!