Opentensor Foundation's Warning and Bittensor Security Incident

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by Giorgi Kostiuk

2 years ago

Made with AI


Opentensor Foundation's Cautionary Note

Opentensor Foundation (OTF), a key player behind Bittensor, an innovative mining network reshaping the landscape of artificial intelligence (AI) creation, sharing, and valuation, has recently alerted its community to establish new wallets and transfer their assets as a precautionary measure. This cautionary tale follows a detection of a $8 million security breach on various network wallets.

Bittensor Acknowledges Breaches

On July 2, unidentified attackers carried out transfers from multiple wallets into their own. OTF noticed an unusual surge in transfer volume and promptly initiated a safe mode to halt additional nodes from connecting to the network.

Reports indicated that the source of the attack was linked to the PyPi Package Manager version 6.12.2, where an unauthorized package was uploaded, posing a security threat to users. This deceitful package, disguised as a Bittensor offering, contained code designed to pilfer encrypted coldkey information. Upon downloading and decrypting this package, users inadvertently transmitted the decoded bytecode to a remote server controlled by the attacker.

While some users who refrained from using third-party applications were impacted, the attack had no adverse effects on the blockchain or Subtensor code, ensuring the safety and integrity of the Bittensor protocol.

Continuous Safety Measures by Opentensor Foundation

In response, the OTF team swiftly removed the malicious 6.12.2 package from the PyPi Package Manager repository and is actively engaged in fortifying defenses against potential future attacks. Collaborating with exchanges, the foundation aims to pinpoint the attacker's identity and potentially retrieve the lost funds.

Operations on the Bittensor blockchain are set to resume, with the community advised to abstain from conducting transfers until further notice. As a proactive step, the foundation has committed to verifying all packages uploaded to PyPi to thwart malicious code and conducting regular security audits.

Recalling the surge in April that saw Bittensor's prices skyrocket by 700% in just two months, hitting a record high of $759 for its TAO tokens, underscores the growing interest in AI and its transformative capabilities.

Escalating Exploits in the Cryptocurrency Realm

Noteworthy is the recent spate of exploits in the digital asset arena, raising concerns among the community about the security of their investments. Recent incidences include KyberSwap losing $47 million, FixedFloat witnessing a $26 million drain, highlighting the importance of robust security measures within the crypto space.

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