NFPrompt, a content generation platform nurtured by Binance Labs, has revealed a cryptocurrency security breach leading to the loss of both user and platform funds.
According to reports, hackers managed to gain unauthorized access to various wallets, including those belonging to NFPrompt’s administrators, resulting in the theft of funds.
Following a cryptocurrency security breach, NFPrompt takes decisive action to safeguard user assets.
On March 15, NFPrompt acknowledged a “critical security incident” where hackers compromised multiple wallets and pilfered funds. This breach extended to unauthorized access to a segment of the platform’s treasury and ecosystem fund, as well as the wallets of NFP’s contract administrators.
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
According to the official statement released by the platform, the security breach on March 15 resulted in hackers successfully compromising several wallets, including those belonging to NFP’s contract administrators. This breach granted the hackers unauthorized access to users’ funds, including a portion of NFP’s treasury and ecosystem fund.
In response to the attack, NFPrompt acted swiftly to mitigate further losses. They promptly transferred ownership of their smart contracts to new addresses, effectively isolating the hackers and preventing any further unauthorized access.
While the platform assures users that NFP tokens and other assets remain secure, the incident has had a significant impact on the token’s price, causing it to plummet by over 15% within the last 24 hours.
NFPrompt is urging users to exercise caution and avoid accepting NFPs from unreliable sources. They advise users to only trade the token on established centralized exchanges (CEXs) until further updates regarding the incident are provided.
The platform is actively collaborating with partner CEXs to suspend NFP deposits while investigations into the breach continue. Additionally, NFPrompt has requested that decentralized exchanges (DEXs) temporarily halt NFP liquidity pool activities to prevent further unauthorized transactions.
Specific CEXs have been notified to freeze transactions that are potentially linked to the hackers in order to prevent any further misuse of compromised funds.
In an effort to combat the security breach, NFPrompt has partnered with leading Web3 security firms SlowMist and Chainalysis. These partnerships aim to monitor the hackers’ on-chain activities and trace token swaps to identify their identities and affiliates.
NFPrompt pledges to reclaim the pilfered funds and collaborates with the FBI in an ongoing investigation.
NFPrompt has reaffirmed its dedication to protecting user interests by ensuring that “NFP tokens associated with the attackers will be identified and rendered unusable.” This commitment underscores the platform’s determination to mitigate the impact of the security breach and safeguard its community’s assets.
In a significant development, NFPrompt has enlisted the assistance of the Federal Bureau of Investigation (FBI) to aid in the apprehension of the perpetrators responsible for the security breach. The involvement of such a prominent law enforcement agency underscores the severity of the incident and the platform’s determination to bring the culprits to justice.
According to statements from the NFPrompt team, the FBI has made significant progress in tracking down the hackers. Additionally, major centralized exchanges (CEXs) have been notified to freeze any funds associated with the hackers, further impeding their ability to profit from their illicit activities. However, the exact extent of the losses incurred by NFPrompt as a result of the security breach remains unclear at this time.
Launched in 2023, NFPrompt introduced a groundbreaking concept that allows users to harness AI tools to create unique artworks and secure ownership of their creations on the blockchain through non-fungible tokens (NFTs). This innovative approach captured the attention of Binance Labs, which selected NFPrompt, along with 12 other projects, for inclusion in the sixth cohort of its prestigious incubation program in September 2023.
As the first Web3 prompt artist platform, NFPrompt has garnered institutional seed investments at an impressive $60 million valuation, underscoring the platform’s potential to revolutionize the intersection of AI art and NFTs. By introducing a token that aligns the community, NFTs, and the value of meticulously crafted AI art, NFPrompt aims to establish a widely adopted Web3 protocol for contemporary art and decentralized internet culture.
However, the security breach has had a tangible impact on the price of the NFP token. According to CoinGecko data, the token has experienced a significant decline of 15.2% in the last 24 hours alone. NFP reached a high of $0.96 on March 14 before plummeting to an intraday low of $0.76 earlier today. Although the current price stands at around $0.79, it remains 22% higher compared to the average price observed over the previous 30-day period.
