The Bittensor blockchain, known for its decentralized artificial intelligence (AI) technology, was abruptly shut down by developers due to a security breach. They took this precaution after detecting suspicious activities aimed at user wallets. This incident underscores vulnerabilities in blockchain and cryptocurrency platforms, emphasizing the critical need for robust security measures.
Bittensor Blockchain Shifts to “Safe Mode”
Earlier today, abnormal transactions prompted the core development team to halt all network operations. According to the blockchain’s block explorer, Bittensor has not generated new blocks for approximately six hours. This cessation has significantly impacted market confidence, leading to a steep decline in the token’s price.
The TAO token has plummeted by more than 17%, currently trading around $227.73.
“We have contained the attack and transitioned the chain into safe mode, where blocks are produced but no transactions are allowed. We are still investigating and exploring all possible causes,” stated Ala Shaabana, co-founder of Bittensor.
The blockchain will remain in safe mode for the next 24 hours, according to Watchmaker, a moderator on Bittensor’s Discord.
“As we are focusing entirely on resolving this issue throughout the week, there will be no regular software updates for Bittensor software or any chain updates on mainnet or testnet until we fully restore the chain,” Watchmaker explained.
ZachXBT, an on-chain investigator, identified a theft address holding more than 32,000 TAO tokens, valued at around $8 million. While Bittensor has not yet disclosed the financial implications of the hack, the community is staying vigilant and exercising caution.
The sharp decline in TAO token value has sparked concerns among investors and platform participants who rely on Bittensor for developing, training, and exchanging AI models. Bittensor leverages blockchain technology to foster a collaborative environment where users contribute computational resources and essential data for the network’s AI training processes.
