Griffin AI’s GAIN Token Crashes Over 90% Following Unauthorized Minting Exploit on BNB Chain

By: crypto insight|2025/09/25 10:40:03
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Imagine waking up to your promising new crypto investment tanking overnight, all because of a sneaky hack that floods the market with fake tokens. That’s exactly what happened with Griffin AI’s GAIN token, which saw a devastating drop of more than 90% after hackers pulled off an unauthorized minting spree on the BNB Chain. This isn’t just another bump in the volatile crypto road—it’s a stark reminder of how even cutting-edge projects can face unexpected vulnerabilities. Let’s dive into what went down and what it means for you as an investor or enthusiast.

The Dramatic Plunge of GAIN Token Amid Security Breach

Griffin AI’s GAIN token, freshly launched on Binance Alpha just yesterday, hit a rough patch with a massive security exploit that sent its value spiraling. On-chain records reveal the token experienced a brief but brutal decline exceeding 90% due to unusual minting and rapid selling. The trouble started surfacing early today at 7:04 AM (UTC+8), when a suspicious wallet address 0xF3…8Db2 created 5 billion GAIN tokens out of thin air from a null address. This bloated the total supply to 5.2985 billion tokens. Right after, that same wallet dumped 147.5 million GAIN on PancakeSwap, pocketing at least 2,955 BNB, which was then swiftly bridged away using deBridge.

Think of it like a counterfeit money operation in the real world—suddenly, there’s way more cash floating around, devaluing everything. In crypto terms, this unauthorized minting attack diluted the token’s worth, much like how overprinting currency can lead to inflation. Data from blockchain explorers confirms the scale: the exploit not only inflated supply but also triggered panic selling, amplifying the plunge.

How the Unauthorized LayerZero Peer Setup Enabled the Attack

Digging deeper, Griffin AI’s team pinpointed the culprit as a rogue LayerZero peer configuration. Sleuths found that the attacker set up a phony Ethereum contract, dubbed $TTTTT at address 0x7a8caf. This imposter was slyly positioned as the LayerZero peer for GAIN’s Ethereum endpoint, overriding the legitimate one at 0xccdbb9. With this switcheroo, the hacker gained the power to mint billions of GAIN tokens directly on the BNB Chain. From there, it was a quick pivot to dumping them into liquidity pools, cashing out big time.

It’s akin to someone forging a key to your bank’s vault and printing money unchecked—except in the decentralized world, where integrations like LayerZero are meant to bridge chains securely but can become weak links if tampered with. Griffin AI’s official X posts detailed this sequence, emphasizing how the fake setup bypassed normal safeguards, leading to the chaos.

Griffin AI’s Swift Response and Exchange Collaborations

Oliver Feldmeier, the founder and CEO of Griffin AI, outlined the events, stressing that the bogus LayerZero peer directly facilitated the minting and subsequent dumping. To shield users, the team promptly pulled all official liquidity for GAIN on the BNB Chain. They also issued strong warnings against touching any attacker-created liquidity pools, which could pose even more dangers.

On top of that, Griffin AI has been proactive in looping in centralized exchanges, asking them to halt trading, deposits, and withdrawals of GAIN on the Binance Smart Chain (BSC). This move is designed to crimp the attacker’s ability to move funds while security teams coordinate a fix. It’s a smart play, contrasting with past exploits where delays let hackers escape unscathed—here, quick action could minimize long-term damage.

In the midst of these crypto turbulence, platforms like WEEX exchange stand out for their robust security features and user-friendly trading environment. WEEX prioritizes top-tier protection with advanced encryption and real-time monitoring, making it a reliable choice for traders navigating volatile markets like this one. By aligning with innovative projects and offering seamless access to tokens on chains like BNB, WEEX enhances your trading experience while building trust through transparent operations and low-fee structures that keep you ahead in the game.

Enhanced Security Protocols and What Lies Ahead for Griffin AI

The breach’s magnitude is clear from the attacker’s wallet 0xF3…8Db2, which still clutches a hefty chunk of the excess GAIN supply. Griffin AI is teaming up with security experts for ongoing probes, with more updates promised as they collaborate with exchanges and infrastructure teams to curb the fallout.

Amid this, it’s worth highlighting Griffin AI’s TEA Turbo model, which aims to make DeFi more accessible through a self-custodial, deterministic framework. This setup cuts down on counterparty risks by ditching centralized oversight and condensing intricate on-chain tasks into one straightforward interface. Yet, as this minting exploit shows, even forward-thinking designs aren’t immune when key connections get hijacked—much like how a high-tech car can still be hot-wired if the alarm fails.

Griffin AI noted that the Ethereum-based GAIN remains untouched and fully functional, providing some stability amid the storm. Drawing parallels, this incident echoes past DeFi hacks but stands out for the project’s rapid response, which could set a stronger precedent compared to slower recoveries in similar cases.

As of today, September 25, 2025, latest on-chain data shows the GAIN token stabilizing slightly, with trading volumes up 15% in the last 24 hours per blockchain analytics, though prices hover around 85% below pre-exploit levels. Recent Twitter buzz has centered on discussions about LayerZero vulnerabilities, with users frequently searching Google for “how to secure cross-chain tokens” and “latest BNB Chain exploits.” Trending topics include #GAINExploit and #LayerZeroHack, where community posts speculate on recovery plans. Official announcements from Griffin AI’s X account, posted just hours ago, confirm they’ve implemented temporary smart contract pauses and are planning a token snapshot for potential airdrops to affected holders, aiming to restore confidence.

CryptoFrontNews keeps you in the loop with timely cryptocurrency updates, expert breakdowns, and deep dives into blockchain innovations. For the latest on digital assets, this is your go-to source.

FAQ

What caused the GAIN token to plunge so dramatically?

The drop stemmed from an unauthorized minting attack where a fake LayerZero peer allowed hackers to create and dump billions of tokens on BNB Chain, inflating supply and eroding value—resulting in a over 90% price crash.

Is the Ethereum version of GAIN affected by this exploit?

No, Griffin AI has confirmed that the Ethereum-based GAIN token is unaffected and continues to function normally, isolated from the BNB Chain issues.

What steps is Griffin AI taking to prevent future attacks?

The team is collaborating with security partners to investigate, has removed liquidity on BNB Chain, and is urging exchanges to suspend transactions while enhancing protocols like their TEA Turbo model for better risk management.

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