GNUS.AI hack results in massive financial loss within Fantom ecosystem

The Fantom network, being the host of GNUS.AI, a famous blockchain project, is pitching a tent during the vulnerable times of a security breach as the company has admitted to suffering an approximate loss of $1.2 million following a successful attack. 

GNUS.AI security breach

GNUS.AI, faced a complex attack, when hackers gained access to the system through vulnerabilities to add false tokens of GNUS circulation. These fake tokens were then put into different pools called the Axelar Bridge allowing them to freely go from network to network such as the Fantom, Ethereum and Polygon platforms. For the next step, these unauthorized tokens have been sold out or mixed with other liquidity pools which further escalates the financial effects of this breach.

GNUS.AI responded in time by announcing the exploitation through a social media post on platform X. The company told the users of system reliability because of their commitment to resolve the situation with a snapshot taken immediately before the exploitation as the subsequent block. 

GNUS.AI issued a message and asked its investors to refrain from buying the GNUS tokens until the new one is introduced, a failure in which the consequences of the hacking could not be remedied. The strategy was undertaken to achieve fairness and transparency within the area, which is in the project’s policy of bringing trust and accountability to the people.

 GNUSAI offered refunds to users experiencing difficulties on their website. Widening the scope of the challenge demonstrates the priority of the project to ensure accountability and reduction of the negative influence of the emergence of crisis.