On March 8th, the Bittensor (TAO) blockchain temporarily suspended due to multiple user wallet attacks, resulting in at least one loss of $100,000.
After the attack, the price of TAO dropped by 15% to $227 but slightly recovered to $238 at the time of writing this article. The platform assured that measures have been taken to prevent further incidents.
“We are conducting an investigation and have completely halted transactions on the chain as a precaution until we gather more information about the attack,” wrote a member of the Bittensor core team on the project’s Discord channel.
Later, co-founder Ala Shaabana confirmed that the chain had been put into a “safe mode,” meaning that while blocks are still being produced, transactions are not being processed.
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Blockchain network trackers for Bittensor indicated that the latest transactions and blocks were processed around 02:20 Bulgarian time on June 3rd.
Independent security analyst ZachXBT reported in his Telegram channel that one of the users lost 32,000 TAO, valued at $8 million at that time, and speculated that the leakage of a private key may have caused the attack.