NFPrompt, a content generation platform developed by Binance Labs, has fallen victim to a major cyberattack that has resulted in significant losses. The breach, which was disclosed recently, involved hackers exploiting vulnerabilities in the platform and gaining unauthorized access to user funds, as well as portions of NFPrompt’s treasury and ecosystem fund.
In a statement released by NFPrompt, the company confirmed the occurrence of a “critical security incident” and admitted that a group of hackers had successfully breached its defenses. The infiltrators were able to access 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 took immediate action to mitigate the damage caused by the hackers. The platform transferred ownership of all NFP smart contracts to new addresses in order to sever the attack vector. Assurances were given that NFP tokens and associated assets are now secure.
Following news of the breach, the value of the NFP token experienced a significant decline. CoinGecko data showed a 13.8% decrease in its price over the past 24 hours. The token, which reached a peak of $0.96, dropped to an intraday low of $0.76 and is currently trading at $0.79. Despite this setback, the NFP token has still seen a 21% increase over the past 30 days.
In response to the breach, NFPrompt has collaborated with various centralized exchanges (CEXs) to temporarily suspend deposits. Decentralized exchanges (DEXs) have also been urged to halt all liquidity pool activities involving the NFP token. Certain CEXs have been instructed to freeze transactions linked to the hackers, and users have been advised not to accept NFP tokens from untrusted sources.
The severity of the breach has prompted the involvement of the Federal Bureau of Investigation (FBI). NFPrompt has announced that law enforcement agencies are working to apprehend the perpetrators and recover the lost assets. However, the exact extent of the losses incurred by NFPrompt has not been disclosed at this time.
NFPrompt, which was established in 2023, is an AI-driven platform that facilitates the creation and trading of nonfungible tokens (NFTs). The platform allows users to generate AI art and assert ownership through blockchain technology. It was selected as one of the 12 projects in Binance Labs’ sixth incubation cohort in September 2023, and initially received significant attention and support within the crypto community.
This cyberattack on NFPrompt highlights the ongoing threat posed by malicious actors in the cryptocurrency space. Despite the platform’s swift response and collaboration with regulatory authorities and exchange partners, the incident underscores the vulnerability of decentralized platforms to sophisticated cyber threats.
As investigations into the breach continue, stakeholders are remaining vigilant and prioritizing the security and integrity of digital assets within the ecosystem. While the immediate aftermath of the attack has caused setbacks for NFPrompt and its associated token, the company’s response and ongoing cooperation with relevant entities demonstrate a commitment to safeguarding user interests and restoring confidence in the platform’s security measures.
