GNUS Discord Hack Costs $1.27M in Losses
2 min read
GNUS Discord Hack Costs $1.27M in Losses
Genius (GNUS), an artificial intelligence (AI) network, recently fell victim to a token-minting exploit that resulted in a loss of around $1.27 million. To address this issue, the GNUS team intends to release a new version of the token and advises users not to purchase the old version. GNUS operates on a blockchain network that enables users to carry out AI computations in exchange for tokens.
According to CertiK, a blockchain security firm, the attacker managed to execute the exploit by gaining access to the private key of GNUS’s account that starts with 0x18. With control over this account, the attacker was able to duplicate the token’s “salt” data from Ethereum and utilize the Axelar bridge protocol to create a Fantom network variant of the token. Subsequently, the attacker minted 100 million counterfeit GNUS tokens, bridged them to Ethereum, and sold them on the market. As a result, the price of the token plummeted, transferring the wealth of existing tokenholders to the attacker, who received real assets in return for tokens created out of thin air.
On May 5, GNUS CEO, “SuperGenius,” revealed on the social media platform X that the compromise of the 0x18 account occurred when an attacker gained access to the team’s private Discord communications. SuperGenius mentioned that the hackers had the ability to monitor private messages on Discord. As an interim solution, the team plans to contribute $500,000 worth of Ether (ETH) from their own funds to a liquidity pool for the new token once it is launched. They will deposit $500,000 in fees that are currently locked until February 2025, resulting in a total compensation of $1 million. This initial distribution of funds will cover approximately 80% of the losses estimated by CertiK to be $1.25 million.
While blockchain networks are susceptible to exploits, there is evidence suggesting that these attacks may be decreasing as security measures advance. According to a report from CertiK on April 30, crypto users encountered the fewest losses due to exploits since 2021. This indicates a positive trend in improving security practices.
The price of the token plummeted due to the exploit, affecting all tokenholders. It’s a tough blow for investors who put their trust in GNUS.
GNUS’s decision to contribute their own funds to the liquidity pool demonstrates their commitment to supporting the new token.
It’s reassuring to know that we’re seeing improvements in security practices within the blockchain ecosystem. This will help protect users in the long run.
The hackers had access to private messages on Discord? That’s a huge breach of privacy and raises concerns about communication security.
I feel bad for the existing tokenholders who lost their wealth while the attacker gained real assets. It’s a stark reminder of the risks involved in crypto investments.
Kudos to CertiK for their insightful report. Their efforts to evaluate and advocate for blockchain security are commendable.
It’s encouraging to see that crypto users encountered the fewest losses due to exploits since 2021. Progress in security measures is promising! ✨
Let’s hope that the release of the new token version will restore trust and stability in the Genius network.
The GNUS team’s commitment to a liquidity pool for the new token is a positive step towards rebuilding trust and confidence.
It’s disappointing to hear that even AI networks like GNUS can fall victim to such exploits. Makes you question the overall security of the blockchain industry.
The new version of the token will provide an opportunity for GNUS to strengthen their security measures and regain users’ trust.