Binance-Backed NFPrompt Platform Hit by Crypto Security Breach, User Funds Lost

Binance Security Breach

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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Last updated: 

March 15, 2024

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NFPrompt, a content generation platform incubated by Binance Labs, disclosed a crypto security breach resulting in the loss of user and platform funds on March 15.The hackers reportedly gained unauthorized access to several wallets, including those belonging to NFP’s administrators, and stole funds.

NFPrompt Hit by Crypto Security Breach: Moves to Secure User Assets

NFPrompt acknowledged

 a “critical security incident” on March 15 that allowed hackers to compromise several wallets and steal funds.

This included unauthorized access to a portion of the platform’s treasury and ecosystem fund, along with 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 platform’s official statement, hackers managed to compromise several wallets, including those belonging to NFP’s contract administrators, gaining unauthorized access to users’ funds.

In response to the attack, NFPrompt took swift action to mitigate further losses. They swiftly transferred ownership of the smart contracts to new addresses, effectively isolating the hackers.

While the platform assures that NFP tokens and other assets remain secure, the token’s price has drastically dropped by over 15% within the last 24 hours.

NFPrompt urged users to exercise caution and refrain from accepting NFPs from unreliable sources. Additionally, they advised solely trading the token on established centralized exchanges (CEXs) until further updates regarding the incident.

Collaborative efforts are underway with partner CEXs to suspend NFP deposits while investigations proceed. NFPrompt has also requested that decentralized exchanges (DEXs) temporarily halt NFP liquidity pool activities.

Specific CEXs have been notified to freeze transactions potentially linked to the hackers.

According to its recent statement, NFPrompt has partnered with leading Web3 security firms SlowMist and Chainalysis. The platforms seek to monitor the hacker’s on-chain activities and trace token swaps to reveal their identities and affiliates.

NFPrompt Vows to Recover Stolen Funds, Works with FBI in Ongoing Investigation

NFPrompt expressed its commitment to safeguarding user interests and stated that “NFP tokens associated with the attackers will be identified and rendered unusable.” The announcement further mentioned the involvement of the Federal Bureau of Investigation (FBI) in assisting with apprehending the culprits. The NFPrompt team said that the FBI tracked down the hackers, and major CEXs were informed to freeze the funds related to the hackers. As of now, the exact amount of losses incurred by NFPrompt remains unclear. Launched in 2023, NFPrompt allows users to leverage AI tools to create unique artworks and claim ownership of their creations on the blockchain through NFTs. This one-of-a-kind approach attracted the attention of Binance Labs which selected NFPrompt along with 12 other projects in the sixth cohort of its incubation program in September 2023.NFPrompt, the first Web3 prompt artist platform, has received institutional seed investments at a $60 million valuation to push its mission of building the bridge between AI art and NFTs.

NFP reached a high of $0.96 on March 14 before plummeting to an intraday low of $0.76 earlier today. While the current price stands at around $0.79, it remains 22% higher compared to the previous 30-day period.