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Binance-Incubated UGC Platform NFPrompt Discloses Significant Losses from Latest Hack
NFPrompt (Non-Fungible Prompt), an AI-powered User Generated Content (UGC) Platform, recently disclosed significant losses resulting from a hack. According to a post on X, NFPrompt revealed that it had fallen victim to cyber intrusion, resulting in the loss of funds from its platform, including a part of NFP treasury and ecosystem fund.
The exact amount of funds lost is yet to be disclosed by the platform. However, preliminary estimates suggest a substantial financial impact.
NFPrompt Response to the Hack
In response to the attack, the platform has assured its users that it is working diligently to assess the extent of the breach and mitigate further risks. Furthermore, the Binance-incubated platform has transferred all its smart contracts ownerships to new addresses, cutting off the attack vector.
ATTENTION $NFP Holders:
We are writing to inform you of a critical security incident involving NFPrompt. It was discovered that a group of hackers compromised some wallets, including those of NFP’s contract administrators.
They illegally gained control of victims' funds,… pic.twitter.com/ZeQXLruvTW
— NFP (@nfprompt) March 15, 2024
Likewise, the Federal Bureau of Investigation (FBI) has stepped in to assist in apprehending the hackers and also reached out to major Centralized Exchanges (CEX) to freeze any funds associated with the cybercriminals. Going forward, users can buy and trade NFPs on reputable CEX only.
Additionally, NFPrompt’s post reveals that it is working with Web 3.0 security firms to monitor the activities carried out by the bad actors and trace token swaps.
This move, it hopes will help it discover the hackers’ identities and their affiliates.
Security Breaches Plaguing the Crypto Market
Last year, Binance Chief Security Officer, Jimmy Su explained how hackers and scammers have suddenly fixed their attention on crypto users, especially those with poor “security hygiene”.
According to Su, these criminals have formed a well-established ecosystem in the dark web which now works together to target and cheat unsuspecting but vulnerable users.
Su recalled how Binance received several attacks and hacking attempts on its internal network when the firm began operations in 2017. However, the narrative has changed since many crypto exchanges began to invest efforts and resources to tighten their security systems. Their gaze is now on the crypto users and because of this conversations relating to ‘security hygiene’ have become necessary.
One major example of previous exploits features KyberSwap, a Decentralized Exchange (DEX) outfit that reportedly experienced a $47 million exploit, associated with its Elastic Pools liquidity solution.
Following the hack, the black hat hacker laid out its demands for the safe return of the assets. These demands include gaining total control and unrestricted access to the protocol as well as temporary full authority and ownership of its governance mechanism. The hacker also requested to take ownership of all documents related to the company as well as all of the exchange’s assets.
Seeing the frequency of the occurrence of these kinds of attacks, it is pertinent that investors and traders remain cautious and endeavor to keep their privacy keys secured. This counsel from industry experts is more necessary considering the growth of AI-based scams.
Binance-Incubated UGC Platform NFPrompt Discloses Significant Losses from Latest Hack
