NFPrompt Platform Suffers Security Breach

On March 15, the Binance-backed platform NFPrompt reported a hacking incident that resulted in the loss of some user and treasury funds.

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 project representatives, a “critical security incident” occurred, allowing a group of attackers to compromise certain wallets and gain control over assets.

The criminals also managed to hack the wallets of smart contract administrators.

Shortly after discovering the incident, developers transferred all platform smart contract permissions to new addresses to “block the attack vector.”

NFPrompt advised users not to accept NFP from unreliable sources and to trade assets only on reputable centralized exchanges.

“We are committed to protecting the interests of NFP holders and supporters. Tokens associated with the hackers will be flagged and confiscated,” the project team stated.

The extent of the damage has not yet been disclosed, but the U.S. Federal Bureau of Investigation has already been involved in the case.

NFPrompt (“non-fungible prompts”) was launched in 2023 as an artificial intelligence platform for creating and trading images as NFTs.

The recently independent venture firm Binance Labs selected NFPrompt as one of 12 projects for the sixth stage of its incubation program in September 2023.

According to CoinGecko, following the attack, the project’s native token NFP plummeted by 15% — from $0.95 to $0.8.

Back in February 23, on-chain researcher ZachXBT detected a suspicious outflow of assets amounting to ~$56.5 million from the hot wallets of the Bitforex exchange.

According to Immunefi, last month the damage to crypto projects from hacks and scams decreased to $67 million.