Binance-Backed Platform NFPrompt Suffers Significant Losses Following Major Security Breach
Summary:
Binance-backed content creation platform, NFPrompt, reports significant losses following a security breach on March 15. The hack, which compromised several wallets, resulted in the illicit access and loss of user and treasury funds. In response, NFPrompt transferred ownership of their smart contracts to a new address, rendering all assets "SAFU". NFP token's value saw a sharp decrease of 13.8% within 24 hours post-incident. NFPrompt has urged users to trade tokens exclusively on trusted centralized exchanges until further notice and has paused deposits during the ongoing investigation.
Following a significant breach, NFPrompt, a content creation platform supported by Binance, reported severe losses from both its treasury and its users. A malicious attack on NFPrompt's security system occurred on March 15. The illicit intrusion by cybercriminals led to the compromise of several wallets, giving the hackers control over funds.
The funds affected by this intrusion include those from NFPrompt's treasury, ecosystem fund, and the wallets of contract administrators. NFPrompt reacted swiftly upon recognising the breach, transferring ownership of all NFP's smart contracts to new addresses, thus limiting the hacker's influence with immediate effect. As per NFPrompt's statement, all assets, including NFP tokens on their platform, are now secured and "SAFU."
The NFP token experienced a sharp drop in value as a direct result of the breach, with a 13.8% decrease within 24 hours of the hacking incident, according to CoinGecko data. From an initial value of $0.96, the NFP token value plummeted to an intraday low of $0.76. Despite this decline, NFP maintains a 21% increase over the past 30 days.
In light of this incident, NFPrompt cautioned its users against accepting NFPs from dubious sources, advising them to trade tokens solely on reliable centralized exchanges (CEX), until they publish further updates on the breach. During its investigation, the platform has begun to collaborate with associated CEXs to halt deposits temporarily and has called on decentralized exchanges (DEX) to suspend all NFP related liquidity pool actions. Some CEXs have also received warnings to halt any transactions linked to the hackers.
NFPrompt asserts their commitment to safeguarding the stakes of all NFP holders and supporters and says that any NFP tokens connected to the hackers will be identified and confiscated. The severity of the breach has drawn the attention of the Federal Bureau of Investigation, which is now supporting NFPrompt in their hunt for the cybercriminals.
The total amount of loss incurred by NFPrompt due to the incident remains undisclosed. NFPrompt, also known as "Nonfungible Prompt," is an AI-powered art creation and nonfungible token (NFT) trading platform that enables users to produce AI art and claim on-chain ownership. NFPrompt was one of the 12 projects chosen by Binance Labs for its incubation program's sixth cohort in September 2023.
Published At
3/15/2024 3:15:00 PM
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