Griffin AI (GAIN), a Web3 AI project launched yesterday at Binance Alpha, is facing its first major crisis.
Within 24 hours of its debut, $GAIN temporarily plunged over 90% after an extraordinary wave of mint and chains robbed investors’ trust.
On-chain data shows exploits derived from suspicious cross-chain setups that can create billions of fake tokens.
Take advantage of the details: 5 billion tokens have been created
At 7:04am (UTC+8), blockchain records revealed that address 0xf3…8db2 had minted 5 billion profits from the null address (0x00…0000). This mint event has inflated from 1 billion to over 5298.5 billion, intended for total supply.
Shortly afterwards, the same wallet cast 147.5 million profits on Pancakeswap, pocketing at least 2,955 bnb profits. The funds were then bridged through debridges, and immediately flew red flags throughout the crypto community.
Griffin AI confirms the incident
Official account @griffin_ai They acknowledged unusual activity and warned users not to interact with the token.
“Cause: $gain created another 5 billion tokens and was dumped continuously. The original maximum supply was 1 billion.”
The team confirmed that they officially requested all exchanges to suspend trading, deposits and withdrawal of BSC profits while shutting down the liquidity pool of pancake swaps.
How the attack happened
Investigators have returned to fake supply to a compromised cross-chain setup, including layerzero. Attacker:
- Malicious Ethereum Contract $TTTTT (0x7A8CAF) was created and was created just 12 hours before the exploit.
- This fake contract has been added as Ethereum Peer, Gain’s cross-chain endpoint.
- I used a false gain of 5B on Mint on my Binance Smart chain using an incorrect peer.
- They started dumping tokens on-chain, and prices collapsed.
The wallet address behind the exploit is 0xF3D17326130F90C1900BC0B69323C4C7E2D58DB2, which still holds an excess of mintted token.
Complete On-Chain Transaction Record: [BscScan](https://bscscan.com/tx/0xa85b18bdb…)
Griffin AI’s emergency response
The Griffin AI team quickly moved to reduce the damage. in Follow-up statement, They outlined their direct steps:
- Disables cross-chain connections to further block illegal mint.
- The requested exchange will stop all $gain activity on the BSC.
- Shut down the liquidity pool to prevent additional dumping.
- Informational law enforcement and engagement security partners.
The project emphasized that its Ethereum token is safe and unaffected. However, about 2.8% of the fake supply, worth an estimated $3 million, was already sold in the chain.
Security partners will intervene
Blockchain Security Company Goplus Security They flagged the incident in real time, bringing attention to fake layerzero peers and subsequent dumps.
The initial investigation does not currently provide evidence of insider involvement, but suggests that one of the project’s private keys may have compromised.
$An impact on gain price
According to CoinMarketCap, $0.19 is traded at $0.19 when it was launched on Binance Alpha. After the exploit, the token crashed over 90%, and temporarily touched on $0.005 before it stabilized slightly as the transaction paused.
Market Sentiment is sour, with many investors labeling the project’s cross-chain security setup as the biggest vulnerability.
What’s next for Griffin AI?
The Griffin AI team faces the difficult task of regaining user trust. With frozen trading and liquidity disabled across the exchange, owners have limited options.
The next steps for a team include:
- Rebuilding the cross-chain security architecture.
- Work with Token Recovery or Rollback Plan Exchanges.
- Work with law enforcement to track and freeze attacker funds.
Community members are looking for transparency and a clear post-mortem on how Layerzero Peer was breached and whether the project could prevent future exploits.
The Griffin AI Exploit highlights the risks of complex cross-chain systems. The project claims that its Ethereum token remains secure, but the attackers’ ability to fill a multi-billion dollar fake supply has already trolled confidence.
For now, the $gain holder will need to wait for further updates from the exchange with the team. Until then, Griffin AI has maintained a story of attention in a high-risk world of Web3 token launches.
Disclosure: This is not trading or investment advice. Always do research before purchasing cryptocurrency or investing in services.
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