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[SITUATION] · [ACTIVE] · [TECHNOLOGY]

2 clusters · 11 sources · 2 days · First seen · Last updated

AI cryptocurrency project exploits

Overview

A series of coordinated exploits targeting AI-focused cryptocurrency projects, including Fetch.ai, NuNet, and SingularityNET, resulted in significant financial losses and market volatility.

Initial reports indicated that a single attacker targeted multiple platforms. In the Fetch.ai exploit, the attacker used compromised signing credentials to drain approximately 8.7 million FET tokens. This was followed by an attack on NuNet, where the perpetrator unauthorizedly minted 408.5 million NTX tokens, representing about 42% of the total supply. The most severe impact occurred on SingularityNET, where the illegal minting of AGIX and WMTX tokens caused the AGIX token to lose over 99% of its value within 24 hours, wiping approximately $93 million from its market capitalization.

Subsequent analysis identified the breach as a compromise of a signing key linked to the Fetch.ai and SingularityNET bridge. Attackers exploited the TokenConversionManagerV3 contract, which connects Ethereum and Cardano. The breach appears to have occurred within the signing service or key custody rather than through a flaw in the contract code itself. The impact was exacerbated by design weaknesses, specifically a lack of per-conversion limits and a signed digest that did not bind the recipient address, allowing a valid signature to be used for any destination. The attacker also utilized a NuNet minter key that had been dormant since March 2023.

Security firms PeckShield and Blockaid confirmed the single-attacker theory. While Fetch.ai stated its own contracts remained unaffected, the company paused AGIX-to-FET conversions as a precaution. The attacker is reported to hold tens of millions of dollars in various crypto assets following the incident.

Entities

Fetch.ai · SingularityNET · NuNet · PeckShield · Ethereum

Claims

What the coverage asserts, and how many sources carry each claim.

Timeline

  1. about 19 hours ago

    [TECHNOLOGY] 3 sources
    Fetch.ai-linked bridge exploit causes $16.77M in losses

    A compromised signing key in the SingularityNET bridge linking Ethereum and Cardano led to a $16.77 million exploit, including a massive FET liquidity drain and unauthorized NTX minting.

  2. 2 days ago

    [TECHNOLOGY] 8 sources
    Fetch.ai and SingularityNET hit by coordinated crypto exploits

    A coordinated hack targeting Fetch.ai, NuNet, and SingularityNET resulted in millions in losses and the unauthorized minting of hundreds of millions of tokens, causing AGIX to crash over 99%.

Sources

bitcoinsistemi.com · blockchainreporter.net · blockzeit.com · coinpedia.org · cryptopolitan.com · en.bitcoinsistemi.com · kriptoworld.hu · lakeandsumterstyle.com · mpost.io · news.bitcoin.com · stanforddaily.com

This summary has been updated 1 time: see revision history