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SirWin
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SirWin

Hackers breach Binance-incubated platform NFPrompt, token plummets 10%

binance-nfprompt-hacked-token
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Hackers breach Binance-incubated platform NFPrompt, token plummets 10%

NFPrompt, an AI-based art and NFT trading platform incubated by Binance, suffered a severe security breach, which the FBI is investigating. 

An official statement highlighted that the attackers breached the platform, leading to unauthorized withdrawals from the NFPrompt treasury, user accounts, and administrator wallets. NFPrompt resecured its digital assets by transferring control of its smart contracts to new, secure addresses, assuring stakeholders that the assets are now safe.

Following the breach, the platform’s NFP token saw a 10% decline as several users quickly liquidated their assets. The token launched just three months ago, around Christmas, and started seeing positive growth last week. While the latest breach seems to have halted the bullist momentum for NFP, the token is still up by over 20% in a month, according to CoinGecko

Proactive measures have been taken to mitigate further risks, including collaboration with central exchanges to suspend deposits and recommendations for decentralized exchanges to stop liquidity pool activities featuring the NFP token. Certain exchanges have been instructed to freeze any transactions traced back to the implicated parties.

Launched in 2023, NFPrompt enables users to create and register AI-generated art as NFTs on the blockchain. Last September, Binance’s venture arm, Binance Labs, selected NFPrompt to participate in its sixth season of the incubation program.