A hacker exploited a vulnerability within the Hyperbridge gateway smart contract, using a fabricated message to gain administrative privileges over the bridged DOT contract on Ethereum, triggering a transaction that generated 1 billion unauthorized tokens.
Covenant AI's exit from Bittensor was prompted by allegations that co-founder Jacob Steeves maintained centralized control, contradicting the project's decentralized mission. The fallout from this departure saw TAO plummet nearly 25% in just six hours, erasing over $650 million in market capitalization.