Bittensor Temporarily Halts Network Activities Following Wallet Compromise

Bittensor, a decentralized artificial intelligence network, has temporarily shut down operations on its network following a security attack on user wallets. 

According to a Telegram update by ZachXBT, an on-chain analyst and detective who tracks and exposes fraudulent activities in the crypto space, the platform shut down operations due to the attack.

A Bittensor community Discord administrator, const [т, T], said concerning the update, “We are investigating what appears to have been an attack on several Bittensor wallets over the last 3 hours.” 

“We are investigating, and in an abundance of caution, have recently fully halted transactions on-chain until there is more information available to us about the nature of this attack,” he continued.

The suspension of operations on the Bittensor network will prevent the attacker from causing more damage, as the network is in safe mode. However, it also implies that users cannot make any transactions, either deposits or transfers. Additionally, it will suspend all software and on-chain updates until further notice. 

Bittensor Suffers Attack on User Wallet

ZachXBT discovered on July 2 that a hacker stole from a wallet due to an exposed private key. The security attack caused Bittensor to lose 32,000 of its native tokens, TAO, which was approximately $8 million at the time.

The incident caused the value of TAO tokens to fall by 15%. According to data on Coingecko, the token dropped from $281 to $237. However, at press time, it was exchanging hands at $239.

The crypto space continues to be attacked by malicious threat actors. In May, ZachXBT discovered seven wallet addresses connected to Lazarus Group hacks. The wallets were said to hold approximately $61.8 million (891 BTC).

The Lazarus Group, known for executing numerous cyberattacks, has caused damage in the crypto space. According to investigations from analytics firms such as TRM and Chainalysis, the notorious threat actors have stolen between $3 billion toand4.1 billion in cryptocurrencies since 2017.

A recent report showed that crypto hackers made away with $385m in May. Fortunately, the number decreased as a June report on crypto hacks revealed $176.2 million in losses.