NFPrompt Suffers Hack, Loses User and Treasury Funds

Mar. 15, 2024
NFPrompt Suffers Hack, Loses User and Treasury Funds

The Binance-incubated content generation platform NFPrompt was hacked on March 15th, resulting in the loss of funds from users’ wallets and the company’s treasury.

NFPrompt announced the “critical security incident” on X (formerly Twitter), revealing that a group of hackers had compromised some wallets and gained control of funds. The hackers illegally accessed money on the NFPrompt platform, including a portion from the NFP treasury and ecosystem fund. They also hacked into the wallets of NFP’s contract administrators.

As soon as the attack was discovered, NFPrompt transferred all smart contract ownerships to new addresses to prevent hackers from accessing them. According to the platform, NFP tokens and other assets on NFPrompt are now secure.

However, the NFP token’s price plunged after news of the hack. Over the past 24 hours, the price dropped 13.14% at the time of writing. The token fell from $0.96 late on March 14th to as low as $0.76 the next day, and  NFP was trading around $0.79, still up about 21% over 30 days.

Source: CoinMarketCap

NFPrompt did not provide full details on the funds lost in the hack from user wallets or their treasury. An investigation into the incident is ongoing.

NFPrompt Warns Users After Hack, Investigates with FBI

NFPrompt, the AI art creation and NFT trading platform suffered a major hack. The company swiftly advised users not to accept NFP tokens from untrusted sources. It recommended only trading NFP on trusted centralized exchanges until further notice regarding the incident.

NFPrompt started cooperating with partner exchanges to pause NFP deposits during the investigation. It also urged decentralized exchanges to temporarily halt liquidity pools involving NFP. Some centralized exchanges received alerts and then froze transactions linked to the hackers.

In the announcement, NFPrompt stated, “We will protect the interests of NFP holders and supporters. NFP tokens affiliated with the hackers will be marked and forfeited.”

According to the company, the hack even prompted the Federal Bureau of Investigation to step in and assist NFPrompt in seizing the hackers. However, the reported attack has left the amount of NFPrompt lost unclear.

Launched in 2023, NFPrompt allows users to create AI artwork and claim ownership on the blockchain. It stands for “Nonfungible Prompt.” In September 2023, major crypto VC firm Binance Labs selected NFPrompt for its incubation program’s sixth cohort, recognizing its potential.

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