Massive Security Breach Rocks Bittensor Network

Bittensor, a decentralized protocol for machine learning, has suffered a significant security breach, leading to the loss of approximately $8 million from multiple wallets within the network.

Blockchain investigator ZachXBT disclosed on July 2 via Telegram that hackers siphoned off over 30,000 Bittensor TAO tokens, which were worth around $8 million at the incident’s time. Bittensor acknowledged the breach in their Discord channel and consequently decided to temporarily suspend network operations to mitigate further damage.

Speculation Surrounding the Hack’s Origin

While the precise cause of the hack remains under investigation, ZachXBT speculated that a “private key leakage” might have facilitated the breach. Following the incident, the TAO token experienced a sharp decline of nearly 16%, plummeting to $227 before recovering slightly to $238, as per CoinMarketCap.

Read more: Elusive Crypto Heists: $19B Lost Since 2011, Blockchain Illicit Activity Surges

Bittensor’s Evolution and Notable Backing

Established in 2019 by AI researchers Ala Shaabana and Jacob Steeves, Bittensor initially operated on Polkadot’s parachain before transitioning to its proprietary layer-1 chain in March 2023. The project has garnered significant support, with Polychain Capital backing Bittensor in 2019, holding approximately $200 million in TAO tokens as of April.

Immediate Response and Future Precautions

In light of the breach, Bittensor’s team is conducting a thorough investigation to identify the vulnerability and prevent future incidents. The swift network halt underscores the urgency and seriousness with which the team is addressing the security lapse.

As the blockchain community continues to evolve, this incident serves as a stark reminder of the critical importance of robust security measures to safeguard digital assets.