NFPrompt, a content generation platform incubated by Binance, has announced that it experienced a hack, resulting in the loss of funds from users and the treasury. On March 15, NFPrompt revealed that the platform had encountered a “critical security incident,” which allowed a group of hackers to compromise certain wallets and gain control of funds. The hackers were able to access funds on NFPrompt, including a portion of the NFP treasury and ecosystem fund, as well as the wallets of NFP’s contract administrators.
Upon discovering the attack, NFPrompt swiftly transferred all of NFP’s smart contract ownerships to new addresses in order to prevent further attacks. The platform assures users that NFP tokens and other assets on NFPrompt are now secure. However, following the hack, the price of the NFP token has dropped by 13.8% in the past 24 hours, according to CoinGecko.
After reaching a high of $0.96 on March 14, the NFP token experienced a decline, hitting a low of $0.76. At the time of writing, the token is trading at $0.79, still showing a 21% increase over the past 30 days.
In response to the incident, NFPrompt has advised users to avoid accepting NFP tokens from untrusted sources and to only trade the token on reputable centralized exchanges (CEX) until further notice. The platform is collaborating with several partner CEXs to suspend deposits during the investigation and has urged decentralized exchanges (DEX) to temporarily halt any activities involving NFP liquidity pools. Certain CEXs have also been alerted to freeze transactions associated with the hackers.
NFPrompt has made it clear that it is dedicated to protecting the interests of NFP holders and supporters, stating that any NFP tokens linked to the hackers will be marked and forfeited. The hack has also prompted the intervention of the Federal Bureau of Investigation, who will assist NFPrompt in apprehending the hackers.
The exact amount lost by NFPrompt due to the attack is currently unknown. Cointelegraph reached out to NFPrompt for comment but had not received a response at the time of publication.
NFPrompt, which stands for “Nonfungible Prompt,” was established in 2023 as an AI art-creation and nonfungible token (NFT) trading platform. Users can utilize the platform to create AI art and claim ownership on-chain. In September 2023, NFPrompt was selected as one of 12 projects in the sixth cohort of Binance Labs’ incubation program.
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