GAIN, the token of artificial intelligence (AI) agent builder Griffin AI, has plunged by a whopping 80% following "abnormal minting and dumping," according to a recent alert posted by cybersecurity firm PeckShield.
The BNB Chain-based token was recently listed on several exchanges, including HTX, KuCoin, Gate.io. On top of that, the token made its debut on Binance, the world's largest cryptocurrency exchange, on the cusp of the attack.
Attacker's actions
The token was supposed to have a capped supply, but malicious actors managed to surpass this limit by suddenly minting a total of 5 million GAIN by exploiting a vulnerability in the project's smart contract.
The attacker immediately ended up swapping 5 million GAIN for BNB, pocketing roughly $3 million. The massive sale resulted in an extremely severe price drop for the token in question.
The attacker then swapped the BNB for 720 ETH and sent the tokens to the Tornado Cash privacy mixer, which makes it extremely challenging to actually trace stolen funds.
Griffin AI's response
Following the attack, Griffin AI requested that all exchanges pause trading, deposits, and withdrawals of the GAIN token. The move is meant to prevent the attacker from performing more transactions.
"We’re coordinating closely with exchanges and security partners," he said.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team