Blockchain startup Bittensor has temporarily halted its network due to a private key leak, causing a 16% drop in the network’s token.

Bittensor, a decentralized machine learning protocol, experienced a hacker attack, which targeted multiple wallets in the network. The losses are estimated at $8 million.

In a Telegram post on July 2, blockchain sleuth ZachXBT reported that hackers withdrew over 30,000 Bittensor TAO tokens, valued at approximately $8 million at the time. Bittensor confirmed the attack in a Discord channel, leading to a temporary network halt.

As of press time, the root cause of the hack remains unclear. ZachXBT suggested it might have resulted from a “private key leakage.” Following the news, the TAO token dropped nearly 16% to $227 before rebounding to $238, according to CoinMarketCap data.

Founded in 2019 by AI researchers Ala Shaabana and Jacob Steeves, Bittensor initially operated as a Polkadot parachain but transitioned to its own layer-1 chain in March 2023. Reports indicate that Polychain Capital backed Bittensor in 2019 and held around $200 million in its tokens as of April.

Stay updated with the latest news and developments in the cryptocurrency world on Global Crypto News.

Post Views: 6