NFPrompt, a content generation platform incubated by Binance Labs, has been subjected to a severe cyberattack resulting in substantial losses.
The breach, disclosed saw hackers exploit vulnerabilities within the platform, compromising user funds and portions of NFPrompt’s treasury and ecosystem fund.
NFPrompt security breach rocks Crypto markets
In a statement released, NFPrompt confirmed the occurrence of a “critical security incident,” conceding that a group of hackers successfully breached the platform’s defenses.
The infiltrators managed to gain unauthorized access to various wallets, including those belonging to the NFP treasury and ecosystem fund, as well as the wallets of NFP’s contract administrators.
Upon discovering the breach, NFPrompt swiftly initiated measures to mitigate the damage inflicted by the hackers.
The platform transferred ownership of all NFP smart contracts to new addresses to sever the attack vector. Assurances were provided that NFP tokens and associated assets are now secure.
Following news of the breach, the value of the NFP token experienced a significant downturn. CoinGecko data revealed a 13.8% decrease in its price over the past 24 hours.
From a peak of $0.96, the token plummeted to an intraday low of $0.76, currently trading at $0.79. Despite the setback, the NFP token has maintained a 21% increase over the past 30 days.
NFPrompt engages in joint efforts
In response to the breach, NFPrompt has collaborated with various centralized exchanges (CEXs) to suspend deposits temporarily.
Additionally, decentralized exchanges (DEXs) were urged to halt all liquidity pool activities involving the NFP token.
Certain CEXs were instructed to freeze transactions linked to the hackers, while users were advised against accepting NFP tokens from untrusted sources.
The severity of the breach prompted the intervention of the Federal Bureau of Investigation (FBI).
NFPrompt announced the involvement of law enforcement agencies in efforts to apprehend the perpetrators and recover lost assets.
However, the exact extent of the losses incurred by NFPrompt remains undisclosed at this time.
Rising from adversity, securing tomorrow’s Crypto landscape
Established in 2023, NFPrompt, short for “Nonfungible Prompt,” emerged as an AI-driven platform facilitating the creation and trading of nonfungible tokens (NFTs).
The platform enables users to generate AI art and assert ownership through blockchain technology.
Selected as one of the 12 projects in Binance Labs’ sixth incubation cohort in September 2023, NFPrompt initially garnered substantial attention and support within the crypto community.
The cyberattack on NFPrompt underscores the persistent threat posed by malicious actors within the cryptocurrency space.
Despite the platform’s swift response and collaborative efforts with regulatory authorities and exchange partners, the incident highlights the vulnerability of decentralized platforms to sophisticated cyber threats.
As investigations into the breach continue, stakeholders remain vigilant, prioritizing the security and integrity of digital assets within the ecosystem.
While the immediate aftermath of the attack has resulted in setbacks for NFPrompt and its associated token, the company’s response and ongoing cooperation with relevant entities signal a commitment to safeguarding user interests and restoring confidence in the platform’s security measures.
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