Token Price Plunges 15% After Hack – User Loses $8 Million

On July 3, the Bittensor (TAO) blockchain was temporarily suspended due to an attack on several user wallets, resulting in at least one of them losing $8 million.

Following the attack, TAO ‘s price dropped by as much as 15% to $227, but has recovered slightly to $238 at the time of writing, and the platform has assured that measures are in place to prevent further incidents.

“We are conducting an investigation and out of an abundance of caution have completely halted transactions on the chain until we receive more information about the attack,” a member of Bittensor’s core team wrote on the project’s Discord channel.

Later, co-founder Ala Shaabana confirmed on X that the chain had been put into “safe mode,” meaning that while blocks were still being produced, no transactions were being processed.

Blockchain trackers for the Bittensor network indicated that the last transactions and blocks were processed around 2:20 a.m. EDT on June 3.

Independent security analyst ZachXBT reported on his Telegram channel that one user lost 32,000 TAOs, valued at $8 million at the time, and suggested that a private key leak may have caused the attack.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.