Binance-incubated platform NFPrompt reports losses to hackers
Binance-incubated content generation platform NFPrompt said it suffered a hack, leading to a loss of some funds by users and its treasury.
NFPrompt took to X on March 15 to report that the platform had “experienced a critical security issue,” which allowed a group of hackers to compromise some wallets and control funds.
Hackers illegally obtained funds on NFPrompt, including some of NFP's treasury and ecosystem funds. They were also able to hack the wallets of NFP contract managers, the ad notes said.
Shortly after discovering the attack, NFPrompt transferred all NFP smart contract ownership to a new address to cut off the attack vector. According to the platform, NFP tokens and other assets on NFPrompt are now “SAFU”.
The NFP token fell sharply after the hack, with its price down 13.8% in the last 24 hours at the time of writing, according to CoinGecko data.
After reaching $0.96 at 11:40 PM UTC on March 14, the NFP token started falling to the low of the day at $0.76. At the time of writing, NFP is trading at $0.79. According to CoinGecko, the token is still up around 21% over the past 30 days.
NFPrompt advises users not to accept NFPs from untrusted sources and to trade the token only on recognized Centralized Exchanges (CEX) until further notice regarding the incident.
The platform has begun working with several partner CEXs to temporarily suspend deposits during the investigation and has urged decentralized exchanges (DEX) to temporarily suspend all NFP-involving liquidity pool activities. Some CEXs have been warned to stop all transactions related to the hackers.
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“We are committed to protecting the interests of NFP owners and supporters. NFP tokens associated with the hackers will be flagged and removed.” NFPrompt wrote.
According to the announcement, the Federal Bureau of Investigation has enlisted the help of NFPrompt to help catch hackers.
It doesn't seem clear how much NFPrompt was lost in the reported attack. Cointelegraph reached out to NFPrompt for comment on the attack but had not yet received a response at the time of publication.
NFPrompt, which stands for “Nonfungible Prompt”, will be launched in 2023 as an artificial intelligence (AI) art creation and non-fungible token (NFT) trading platform that allows users to create AI art and own it on-chain.
Binance Labs, a major crypto venture capital firm recently spun off from Binance, has selected NFPromp as one of the 12 projects in its sixth cohort incubation program in September 2023.
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