Bittensor Network Shuttered After Suspected Wallet Hack, TAO Price Plummets

The Bittensor blockchain, a platform for decentralized artificial intelligence (AI), has been abruptly halted following a suspected security breach targeting user wallets. This incident has sent shockwaves through the crypto community, causing the Bittensor token (TAO) to plunge over 12%.

Bittensor Network in “Safe Mode”

The Bittensor team detected suspicious activity on Wednesday morning and swiftly suspended all network operations as a precautionary measure. Blockchain explorers confirm that no new blocks have been generated for over six hours, putting the network in a “safe mode” where transactions are blocked.

Investigating a Potential Private Key Leak

While official details remain scarce, reports suggest the attack involved unauthorized access to user wallets. Security researcher ZachXBT claims a leak of private keys, which act as passwords to crypto wallets, might be responsible. The investigation is ongoing to determine the exact cause and potential impact.

TAO Price Feels the Heat

The market reacted swiftly to the news, with the TAO token experiencing a significant price drop. As of writing, TAO is trading around $237, down from $281 just 24 hours ago. This represents a decline of over 12%.

Bittensor Team Pledges Transparency

Bittensor co-founder Ala Shaabana confirmed the network halt and assured users that the situation is under control. He stated, “We have contained the attack and put the chain into safe mode… We’re still mid investigation and are considering all possibilities.”

Community on High Alert

The Bittensor community on Discord is abuzz with concerns. A moderator, “Watchmaker,” confirmed the network will remain in “safe mode” for the next 24 hours while the investigation progresses. Regular software updates have also been temporarily suspended until the network is fully restored.

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Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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