Layer 1 blockchain Fantom ecosystem’s project GNUS.AI (GNUS) experienced a security breach, resulting in an approximate loss of $1.27 million in funds, according to the blockchain security firm Beosin. 

After the security incident, the attacker sought to obscure the origin of the stolen funds by mixing and transferring them to the cryptocurrency exchange OKX. The address associated with the bad actor is presently under surveillance by Beosin’s Know Your Transactions (KYT) tool.

$GNUS on Fantom was attacked with a loss of about $1.27 million.Hacker Address:0x548c63A6A7299AB54762E1BFA6b56c1B94C2A820The address has been monitored by Beosin KYT and the attacker tried to mix and send the funds to @okx. https://t.co/0BDcRIyQTk

— Beosin Alert (@BeosinAlert) May 6, 2024

Earlier today, GNUS.AI published a post on the social media platform X, in which it has acknowledged that due to a recent exploit, a hacker managed to create counterfeit GNUS tokens on the Fantom blockchain, then transferred them to the Ethereum and Polygon blockchains using the Axelar Bridge, ultimately selling them to existing liquidity pools.

The company additionally emphasized its plan to execute a snapshot at the block preceding the exploit and cautioned users against acquiring GNUS tokens after the exploit, as it plans to introduce a new token. For users impacted by the exploit, GNUS.ai provided the option to request a refund through a dedicated process on its website.

Important Announcement Due to a recent exploit, a hacker was able to mint fake $GNUS tokens on Fantom, transfer via Axelar Bridge to Ethereum and Polygon, and sell into existing liquidity pools. We will be conducting a snapshot at the block preceding the exploit. To… pic.twitter.com/MoKNybCwTN

— GNUS.ai (@GnusAi) May 5, 2024

GNUS.AI Rewards Users With GNUS Tokens For Participation In Decentralized Processing

GNUS.AI enables end-users to engage in decentralized processing, allowing them to earn GNUS tokens, the platform’s native currency, by leveraging the idle cycles of various devices such as computers, mobile devices, and other internet-connected devices.

When a user engages with an application or system that incorporates GNUS.AI, their data undergoes processing on a decentralized network of nodes. These nodes are spread throughout the network and work together to process data, ensuring both efficiency and security.

The platform seeks to democratize AI and machine learning (ML) processing by enabling individuals to offer their computing resources and receive rewards, establishing a cohesive ecosystem where users can incorporate the system into diverse applications and games. The project was formally launched and made available to the public in March 2024.

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