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NFTrompt, an ai-based nft and art trading platform incubated by Binance, suffered a serious security breach that the FBI is investigating.
An official statement highlighted that the attackers breached the platform, leading to unauthorized withdrawals from NFPrommpt's treasury, user accounts, and administrator wallets. NFPrompt recovered its digital assets by transferring control of its smart contracts to new, secure addresses, assuring interested parties that the assets are now safe.
Following the breach, the platform's NFP token saw a 10% drop as several users quickly liquidated their assets. The token was launched just three months ago, around Christmas, and started seeing positive growth last week. While the latest breach appears to have halted NFP's bullish momentum, the token is still up more than 20% in a month, according to CoinGecko.
Proactive measures have been taken to mitigate additional risks, including collaborating with central exchanges to suspend deposits and recommendations for decentralized exchanges to stop liquidity pool activities with the NFP token. Certain exchanges have been ordered to freeze any transactions dating back to the parties involved.
Launched in 2023, NFPrompt allows users to create and register ai-generated art as NFTs on the blockchain. Last September, Binance's venture arm, Binance Labs, selected NFPrommpt to participate in its sixth season of the incubation program.
