Griffin AI price crashes 90% after attacker mints 5B GAIN tokens a day after launch
Griffin AI’s token GAIN collapsed more than 90% within 24 hours of its launch after an attacker minted 5 billion tokens through a cross-chain exploit, wiping out millions in market value.
- Griffin AI price plunged 90% within 24 hours of launch.
- Exploiter minted 5B GAIN tokens using a fake LayerZero peer.
- Exploit questions raise concerns about contract security and insider risk.
The project confirmed on Sept. 25 that an “unauthorized LayerZero peer” was introduced, allowing the attacker to bypass Griffin AI’s official Ethereum endpoint.
The exploiter deployed a fake Ethereum (ETH) contract, then added it as a peer for GAIN’s cross-chain setup. This enabled the minting of 5 billion tokens on BNB (BNB) Chain, far exceeding the project’s 1 billion supply cap.
Blockchain data shows that the attacker’s wallet dumped around 147.5 million GAIN on PancakeSwap (CAKE) and over-the-counter trades in under an hour, causing the token price to crash. Analysts estimate the exploiter bridged profits via deBridge to Solana, Ethereum, Base, and Arbitrum, netting between $3-$4 million.
Security firm GoPlus flagged the exploit as similar to the recent Yala attack, where a fake LayerZero peer was also used to bypass cross-chain security checks.
Market fallout post hack
The incident erased nearly $36 million in market capitalization, sending $GAIN from its launch highs near $0.25 to $0.0273 at press time, a 87% plunge. Market cap now stands around $6.4 million. Trading volume surged to nearly $100 million in 24 hours, up 133% from the day before, as opportunistic traders attempted to play the volatility.
Griffin AI emphasized that user wallets were not directly compromised. The project said further updates will follow as it investigates and works with partners to address the incident.
Questions over Griffin AI security
The exploit came less than 24 hours after Griffin AI launched its token on Binance Alpha, KuCoin, HTX, MEXC, and Gate.io. The GAIN contract had been audited by Hacken pre-launch, but analysts suggest the flaw was introduced post-deployment through misconfigured multisig permissions or an insider compromise.
The sudden crash has fueled debate on X over whether the exploit was an external hack or a potential inside job. For now, the attacker remains in control of the excess minted supply, though dumping paused after the initial sell-off.
