- By accessing the team’s wallet address and private Discord communications, the attacker was able to create 100 million fictitious tokens.
A token-minting exploit that affected the Gnus.AI artificial intelligence network on May 5 caused it to lose roughly $1.27 million. The Genius (GNUS) token will soon be updated, and consumers are advised to stop purchasing the previous version, according to the team’s announcement.
Through the blockchain network AI, users can swap tokens for AI computations.
Blockchain security company CertiK said in a post dated May 6 that the attacker executed the exploit by obtaining the private key to the team’s account, which starts with 0x18. After taking over this account, they replicated the Ethereum version of the token’s “salt” data, which enabled them to use the Axelar bridge protocol to construct a Fantom network version of the token.
Following that, 100 million fictitious GNUS tokens were created, linked to Ethereum, and offered for sale. Due to the ensuing price collapse, token holders’ money was transferred to the attacker, who gained actual assets in return for tokens that were generated out of thin air.
The CEO of Gnus.AI, “SuperGenius,” asserted in a post dated May 5 on the social networking platform X that the 0x18 account was hacked after an attacker obtained access to the team’s secret Discord conversations. He said, “It appears that hackers are able to view private messages on Discord.”
The company will contribute $500,000 worth of Ether ETH tickers down $3,091 from its own funds into a liquidity pool for the new currency once it is created, according to SuperGenius, as a “quick fix.” The team will also deposit payments totaling $500,000 that are due but are locked until February 2025. This represents a $1 million compensation in total.
According to CertiK’s estimation, the exploit resulted in losses of $1.25 million, meaning that 80% of the losses will be covered by the inaugural fund distribution.
Blockchain networks are still vulnerable to attacks. On the other hand, some data suggests that as security procedures advance, these attacks might be decreasing. Crypto consumers had the fewest losses from vulnerabilities in April since 2021, per a CertiK study dated April 30.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
