NFPrompt Faces Crypto Security Breach: User and Platform Funds Compromised
NFPrompt, a content generation platform incubated by Binance Labs, has recently experienced a critical security incident resulting in the loss of user and platform funds. Hackers were able to gain unauthorized access to several wallets, including those belonging to NFPrompt’s administrators, and stole funds. The platform has taken immediate action to secure user assets and mitigate further losses.
Hackers Compromise Wallets and Steal Funds
NFPrompt disclosed a “critical security incident” on March 15, where hackers successfully compromised several wallets and stole funds. This included unauthorized access to a portion of the platform’s treasury and ecosystem fund, as well as the wallets of NFPrompt’s contract administrators.
In an official statement, NFPrompt confirmed that the hackers gained unauthorized access to users’ funds, including a portion of NFPrompt’s treasury and ecosystem fund.
Swift Action Taken to Secure User Assets
Upon discovering the security breach, NFPrompt took immediate action to mitigate further losses and secure user assets. The platform transferred ownership of its smart contracts to new addresses, effectively isolating the hackers. Despite these measures, the price of NFP tokens has dropped significantly by over 15% within the last 24 hours.
To ensure user safety, NFPrompt advises caution when accepting NFPs from unreliable sources and recommends trading the token solely on established centralized exchanges (CEXs) until further updates are provided regarding the incident. The platform is actively collaborating with partner CEXs to suspend NFP deposits during ongoing investigations. Additionally, decentralized exchanges (DEXs) have been requested to temporarily halt NFP liquidity pool activities.
NFPrompt has partnered with leading Web3 security firms SlowMist and Chainalysis to monitor the hackers’ on-chain activities and trace token swaps, with the aim of identifying their identities and affiliates.
NFPrompt Determined to Recover Stolen Funds: FBI Assisting in Investigation
NFPrompt is committed to safeguarding user interests and has vowed to identify and render unusable any NFP tokens associated with the attackers. The Federal Bureau of Investigation (FBI) is actively involved in assisting with apprehending the culprits. Major CEXs have been notified to freeze funds related to the hackers, although the exact amount of losses incurred by NFPrompt remains unclear.
NFPrompt’s Unique Approach and Binance Labs Incubation
NFPrompt is a platform launched in 2023 that allows users to leverage AI tools for creating unique artworks and claiming ownership through NFTs. This innovative approach caught the attention of Binance Labs, which selected NFPrompt as one of 12 projects in its sixth cohort of incubation programs in September 2023.
The platform received institutional seed investments at a $60 million valuation to support its mission of bridging AI art and NFTs. By introducing a token that aligns the community, NFTs, and masterfully imagined AI art, NFPrompt aims to build a widely adopted Web3 protocol for contemporary art and decentralized internet culture.
NFP Token Price Impact
Following the security breach, the price of NFP tokens has experienced a decline. CoinGecko data shows a decrease of 15.2% within the last 24 hours. The token reached a high of $0.96 on March 14 but dropped to an intraday low of $0.76. Currently priced at around $0.79, it remains 22% higher compared to the previous 30-day period.
Hot Take: NFPrompt’s Response to the Security Breach
NFPrompt has swiftly taken action to address the security breach and secure user assets. By partnering with Web3 security firms and involving the FBI in the investigation, the platform is determined to recover stolen funds and hold the hackers accountable.
However, the incident has had a significant impact on the price of NFP tokens, highlighting the importance of robust security measures in the crypto space. It serves as a reminder for users to exercise caution when dealing with cryptocurrencies and rely on established exchanges for trading until further updates are provided by NFPrompt.
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