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Phishing Attack Sees $4.3M Worth of ALI Token Lost

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Phishing Attack Sees $4.3M Worth of ALI Token Lost

  blockchainreporter.net 13 h

Phishing Attack Sees $4.3M Worth of ALI Token Lost

A recent phishing attack siphoned $4.3 million from ALI Utility Token holders. The incident unfolded when a malicious draining service, identified as Inferno Drainer, compromised the wallet address 0x7653C9364bB800E1136aa0634c4629eBe76A744E, extracting a staggering 113,102,183 ALI Utility Tokens. The alarm was sounded by ZachXBT after a tip-off from @realScamSniffer, prompting an urgent reaction to address the theft.

Earlier today a draining service phished $4.3M from an ALI holder

After seeing a message from @realScamSniffer I immediately alerted the core team and investors who helped put together an emergency community vote to burn the stolen tokens after approval from the victim.

Happy… pic.twitter.com/0t6DyDopDh

— ZachXBT (@zachxbt) March 1, 2024

Community Governance in Action

Following the breach notification, the AI Protocol organized an emergency community governance vote, proposing to burn the stolen tokens to nullify the hacker’s gains. This decisive action, endorsed by the victim and the community, led to the burning of 111,652,181 ALI Utility Tokens, effectively neutralizing the threat posed by the stolen assets to the token’s market integrity.

2/4 As per the initial review of the event, the hacker used the draining service Inferno Drainer and was able to hack the wallet 0x7653C9364bB800E1136aa0634c4629eBe76A744E for a total of 113,102,183 ALI Utility Tokens

— AI Protocol (@The_AI_Protocol) March 1, 2024

In the aftermath of the token burn, the AI Protocol has committed to conducting a thorough analysis to unravel the attack’s specifics and fortify its defenses against future security threats. This incident serves as a potent reminder of the vulnerabilities inherent in digital asset platforms and the importance of proactive security measures.

The community’s efficient response to this incident prevented the potential devaluation of the ALI Utility Token. It underscored the strength and resilience of the collective effort in the face of cyber threats. As the investigation continues, further details are expected to be shared with the public, reinforcing the importance of transparency and trust in maintaining the integrity of the cryptocurrency ecosystem.

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