Bitrabo Editorial
The Bittensor project faced a setback following a security breach that led to the suspension of its network. Suspicions of a compromised private key arose after approximately $8 million in TAO tokens were stolen, raising doubts about the safety of the cryptocurrency ecosystem.
Co-founder Ala Shaabana made an announcement on July 3rd regarding the network shutdown due to ongoing wallet hacks. This incident marked the second theft within a short period, with a previous breach resulting in an $11 million loss.
Amid investigations into the breach, Shaabana confirmed the implementation of safety measures, including placing the network in “safe mode” to prevent further unauthorized transactions. Efforts are underway to identify the responsible parties and prevent future breaches.
Prior to the network shutdown, concerns were initially raised by crypto investigator ZachXBT, whose vigilance brought attention to suspicious activities prompting the network halt.
Hackers’ Tactics Evolve:
A shift in hacker strategies was noted as private key leaks surpassed smart contract vulnerabilities in causing digital asset thefts, according to the “2024 Crypto HackHub Report” by Merkle Science. Compromised private keys accounted for over 55% of hacked funds, indicating a change in focus for cybercriminals.
The Reputation of Bittensor:
Bittensor, a significant AI-driven blockchain project with a market capitalization of $1.6 billion, focuses on creating a secure decentralized network for collaborative machine learning models. Following the security breaches, investor confidence wavered, leading to a 14% drop in TAO token prices. While steps have been taken to address the situation, rebuilding trust will pose a challenge for Bittensor.
Featured image from TechHQ, chart from TradingView