LayerZero Vulnerability Allows Hacker to Create 5 Billion $GAIN, Causing 84% Price Drop
- Griffin AI's $GAIN token crashed 84% after attackers exploited a LayerZero bridge vulnerability to mint 5 billion counterfeit tokens. - Attackers created a fake LayerZero Peer on Ethereum, bridged tokens to BSC, and laundered $3 million via Tornado Cash. - The exploit exposed critical flaws in cross-chain security, triggering panic selling and eroding $4.6 million in market cap. - Experts warn of systemic risks in decentralized protocols, urging stricter audits to prevent similar losses in DeFi ecosystem
Following its debut on Binance, Griffin AI’s native token $GAIN suffered a devastating security incident, as hackers exploited a flaw in the
Lookonchain, an on-chain analytics provider, traced the attacker’s transactions, showing that 2,956
This event has sparked serious concerns about the reliability of decentralized protocols. The sudden addition of 5 billion tokens into the market diluted the token’s worth and caused trading volume to spike by 400%, further destabilizing prices. CertiK pointed out that the root of the attack was a critical weakness in LayerZero’s peer initialization, a problem that could threaten other cross-chain tokens as well.
The downfall of the Griffin AI token has been compared to other recent crypto hacks, underscoring the vulnerability of projects lacking thorough security reviews. Lookonchain’s review of the attacker’s wallet addresses—0x107E83EBE677DDec253C440127F23310720177c2 and 0xB31BDDb3d1c2b45E5c5fE149Aa4c8304e9D1916C—indicates that recovering the stolen funds is unlikely due to the use of privacy mixers.
Industry analysts caution that such breaches undermine investor trust and stress the importance of stronger protocol oversight. The Griffin AI hack stands as a warning for both developers and users, illustrating how a single security gap can result in widespread losses in just hours. As the community responds to the aftermath, this incident may drive greater demand for robust security protocols and independent audits within the DeFi sector.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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