Cybercriminals Raid AI-Focused Blockchain Firm Bittensor, Stealing $8M in TAO Tokens
An estimated 32,000 TAO tokens, valued at approximately $8 million, have reportedly been stolen from the network’s validators.
Cybercriminals have reportedly perpetrated a multi-million dollar raid on AI-focused blockchain firm Bittensor.
An estimated 32,000 TAO tokens, valued at approximately $8 million, have been stolen from the network’s validators, according to the latest reports.
The situation came to light after TAO suddenly plunged 9%. According to data from CoinMarketCap, the token’s value plummeted to a low of $227, down 13% from its pre-hack price of $260. That prompted Bittensor co-founder Ala Shaabana to confirm that the chain was placed into ‘safe mode’ in an update on X.
According to a further update in the project’s Telegram channel, the pause in transactions will last for at least the next 24 hours. While such interventions have proven effective in minimising losses, they also raise questions about the fundamental principles of decentralisation in cryptocurrency. Critics argue that the ability to pause or roll back a blockchain undermines its credibility and contradicts the core tenets of crypto ideology.
Additionally, this isn’t the first time Bittensor has faced such a challenge. In early June, $11.2 million worth of TAO was stolen from a large holder, with the token valued at around $400. The recurrence of such incidents has led to heightened scrutiny and concern within the Bittensor community and the broader crypto world.
Although the Opentensor Foundation has not yet confirmed the cause of the most recent attack, ZachXBT, an independent on-chain investigator, suspects a potential private critical leak.
The decision to pause the network mirrors similar moves made by other blockchain projects in the face of security breaches. In October 2022, BNB Chain validators paused their network in response to a $600 million hack, successfully preventing the movement of $430 million in stolen funds.
Earlier this year, the NFT project Munchables saw $92 million returned after a rogue developer withdrew user funds, with the threat of rolling back the Blast chain likely playing a role in the resolution.
Founded by Jacob Steeves in 2015 and launched in 2021, Bittensor represents a unique intersection of AI and blockchain technology. Bittensor had been riding high on the AI wave, positioning itself as a decentralised alternative to tech giants like OpenAI and Google in the AI space.
The project’s unique approach, which repurposes Bitcoin-like mining mechanics for AI functions, caught the attention of prominent venture capital firms. Polychain Capital, Digital Currency Group, and Dao5 collectively poured hundreds of millions into TAO tokens, pushing Bittensor’s market cap to a staggering $3.7 billion.
Steeves is also optimistic about his company’s prospects and, according to him, the solution that he believes will resolve what is an existential threat in A1 – the centralisation of power with a handful of tech giants.
“It’s not the iRobot outcome; it’s the Elysium outcome,” Steeves told Fortune, emphasising the need for decentralised AI solutions. Participants in the Bittensor network can earn TAO tokens by contributing computational power or data, a process similar to Bitcoin mining but applied to AI development.
The network is structured around 32 specialised subnets, each handling different AI-related functions such as data storage, access to AI-powered chatbots, and pricing oracles. This decentralised approach is designed to encourage continuous competition and evolution, balancing the efforts of miners and validators to maintain and develop the protocol.
Bittensor's journey highlights the ongoing tensions in the crypto and AI communities surrounding the balance between decentralisation and security. Steeves sees Bittensor as a rival to the centralised AI tools created by major corporations such as OpenAI, Google, and Meta. He cautions against a bleak future in which powerful entities could dominate and views Bittensor’s decentralised approach as a vital stride towards achieving a more equitable technological environment.
While the recent setbacks have been a test for Bittensor, its innovation-minded approach and supportive community solidify it as a critical player in this ongoing synthesis of AI with blockchain. As the project navigates these challenges, its ability to uphold its principles of decentralisation while ensuring security will be crucial to its long-term success and credibility.
The above is the detailed content of Cybercriminals Raid AI-Focused Blockchain Firm Bittensor, Stealing $8M in TAO Tokens. For more information, please follow other related articles on the PHP Chinese website!

We all watched Bitcoin decline after the massive tariffs imposed by Donald Trump and rebound when he eased them for everyone but China.

In today's fast-paced blockchain world, building a crypto application that seamlessly interacts with multiple networks shouldn't take hours or require juggling endless APIs.

The crypto market is showing positive signs right now. The total market is worth $2.6 trillion, up 0.36%. Bitcoin trades just under $83,000, up 2.27%, while Cardano ADA sits at $0.6268, up 1.79%.

Bitcoin prices fell below a key psychological threshold on Monday, dipping to $79,000 in the afternoon. Although recovering some of its earlier losses

FARTCOIN has been one of the standout performers in the meme coin space, with its price soaring nearly 250% over the last 30 days.

Crypto analyst Saeed has outlined a bearish case for the Bitcoin price, predicting that it could still drop to as low as $74,000.

Grayscale Investments has released its updated “Assets Under Consideration” list for Q2 2025, highlighting a new batch of altcoins that may be featured in future crypto investment products.

The world of cryptocurrency regulation is heating up, with the SEC actively seeking advice from major players like Uniswap (UNI) and Coinbase.

Hot AI Tools

Undresser.AI Undress
AI-powered app for creating realistic nude photos

AI Clothes Remover
Online AI tool for removing clothes from photos.

Undress AI Tool
Undress images for free

Clothoff.io
AI clothes remover

AI Hentai Generator
Generate AI Hentai for free.

Hot Article

Hot Tools

Dreamweaver CS6
Visual web development tools

SecLists
SecLists is the ultimate security tester's companion. It is a collection of various types of lists that are frequently used during security assessments, all in one place. SecLists helps make security testing more efficient and productive by conveniently providing all the lists a security tester might need. List types include usernames, passwords, URLs, fuzzing payloads, sensitive data patterns, web shells, and more. The tester can simply pull this repository onto a new test machine and he will have access to every type of list he needs.

PhpStorm Mac version
The latest (2018.2.1) professional PHP integrated development tool

ZendStudio 13.5.1 Mac
Powerful PHP integrated development environment

SublimeText3 Linux new version
SublimeText3 Linux latest version