The Gnus.AI artificial intelligence network suffered a loss of approximately $1.27 million due to a token mining attack on May 5. The team announced plans to release a new version of the Genius (GNUS) token and that users should no longer purchase the old version.
Gnus.AI is a blockchain network that allows users to perform AI computations by exchanging tokens.
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According to a May 6 post from blockchain security company CertiK, the attackers performed the exploit in the following way: Acquisition The private key of your team account starting with 0x18. After taking control of this account, they were able to copy the token’s “salt” data from Ethereum and create a Fantom network version of the token using the Axelar bridge protocol.
Afterwards, 100 million fake GNUS tokens were issued, linked to Ethereum, and sold on the market. The resulting price crash transferred wealth from existing token holders to the attackers, as they received real assets in exchange for tokens created out of thin air.
Gnus.AI CEO ‘SuperGenius’ posted on social media platform assert The 0x18 account was compromised when the attacker accessed the team’s private Discord communications, saying, “Obviously hackers can view private messages on Discord.”
SuperGenius said that as a “quick fix” the team will deposit $500,000 worth of Ether (ETH) from its own funds into a liquidity pool once the new token is released. The team will also deposit $500,000 worth of fees, which are currently locked until February 2025. This is a total award of $1 million.
CertiK estimated The exploit resulted in a loss of $1.25 million, meaning the initial distribution of funds would cover 80% of the loss.
Blockchain networks continue to be at risk of abuse. However, some evidence suggests that these attacks may decline as security practices improve. In April, Rypto users lost the fewest to exploits since 2021, according to an April 30 report from CertiK.