Binance-incubated platform NFPrompt reports losses to hackers

Helen Partz11 hours agoBinance-incubated platform NFPrompt reports losses to hackersThe hackers illegally accessed funds on NFPrompt, including a portion of the NFP treasury and ecosystem fund.965 Total views14 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBinance-incubated content generation platform NFPrompt said it suffered a hack, leading to losses of some funds by users and the treasury.

NFPrompt took to X on March 15 to report that the platform had faced a “critical security incident,” allowing a group of hackers to compromise some wallets and gain control of funds.

The hackers illegally accessed funds on NFPrompt, including a portion of the NFP treasury and ecosystem fund. They also managed to hack the wallets of NFP’s contract administrators, the announcement notes.

Shortly after discovering the attack, NFPrompt transferred all of NFP’s smart contract ownerships to new addresses to cut off the attack vector. According to the platform, NFP tokens and other assets on NFPrompt are now “SAFU.” 

The NFP token has plummeted significantly after the hack, with the price dropping 13.8% over the past 24 hours at the time of writing, according to data from CoinGecko.

After reaching $0.96 at 11:40 pm UTC on March 14, the NFP token started falling to an intraday low of $0.76. At the time of writing, NFP is trading at $0.79. The token is still up around 21% over the past 30 days, according to CoinGecko.NFPrompt (NFP) token 24-hour price chart. Source: CoinGecko

NFPrompt advised users not to accept NFPs from untrusted sources and only trade the token on reputable centralized exchanges (CEX) until further notice regarding the incident.

The platform has started cooperating with several partner CEXs to pause deposits during the investigation and urged decentralized exchanges (DEX) to temporarily halt all liquidity pool activities involving NFP. Some CEXs were also alerted to freeze all transactions associated with the hackers.

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“We are committed to protecting the interest of NFP holders and supporters. NFP tokens affiliated with the hackers will be marked and forfeited,” NFPrompt wrote.

The hack has even triggered the Federal Bureau of Investigation to step in to help NFPrompt seize the hackers, according to the announcement.

It appears unclear how much NFPrompt has lost due to the reported attack. Cointelegraph approached NFPrompt for a comment regarding the attack but at the time of publication, had yet to receive a response.

NFPrompt, which stands for “Nonfungible Prompt,” was launched in 2023 as the artificial intelligence (AI) art-creating and nonfungible token (NFT) trading platform allowing users to create AI art and claim ownership on-chain.

Binance Labs, a major crypto venture capital firm that has recently spun out of Binance, selected NFPrompt as one of 12 projects in the sixth cohort of its incubation program in September 2023.

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