Category: NFT News

NFPrompt, Backed by Binance, Reveals Losses to Hackers in Security Breach

SNEAK PEEK

  • NFPrompt, a platform incubated by Binance Labs, faces a critical security breach resulting in substantial losses of user funds and treasury assets.
  • The hack prompts a sharp decline in the value of NFP tokens, while authorities such as the FBI step in to assist in tracking down the perpetrators.
  • Despite the setback, NFPrompt swiftly takes action to secure assets, reassure users, and collaborate with exchanges to mitigate further risks.

Binance-backed platform NFPrompt has fallen victim to a hacking incident, resulting in significant losses of user funds and portions of the platform’s treasury. The breach, disclosed on March 15, exposed vulnerabilities that allowed hackers to infiltrate wallets and gain control over funds, including those from NFP’s treasury and ecosystem fund. Additionally, the hackers targeted wallets belonging to NFP’s contract administrators.

In response to the attack, NFPrompt swiftly took action by transferring all smart contract ownerships to new addresses to mitigate further risks. Assuring users, the platform declared that NFP tokens and assets on NFPrompt are now secure.

However, the repercussions of the hack were felt in the market as the value of NFP tokens plummeted by 13.8% within 24 hours, according to CoinGecko data. Despite trading at $0.79, down from its peak of $0.96 on March 14, the token still maintains a 21% increase over the past 30 days.

In light of the incident, NFPrompt issued precautions to users, advising against accepting NFPs from untrusted sources and recommending trading the token only on reputable centralized exchanges (CEX). The platform also collaborated with partner CEXs to pause deposits during the investigation and urged decentralized exchanges (DEX) to temporarily halt liquidity pool activities involving NFP. Furthermore, measures were taken to freeze transactions associated with the hackers, with a commitment to mark and forfeit NFP tokens affiliated with them.

Acknowledging the severity of the situation, the Federal Bureau of Investigation (FBI) has intervened to assist NFPrompt in identifying and apprehending the hackers. However, the exact extent of the losses incurred by NFPrompt remains undisclosed at this time.

Established in 2023, NFPrompt, short for “Nonfungible Prompt,” initially gained recognition as an AI-driven art creation and NFT trading platform. Its selection by Binance Labs for incubation underscores its potential within the crypto space.

Despite the setback, NFPrompt’s proactive measures and cooperation with authorities signal a commitment to safeguarding the interests of its users and restoring trust in the platform’s security protocols.




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