An exploit targeting the Artificial Superintelligence Alliance (FET) token converter on Ethereum escalated into a multi-project attack, resulting in approximately $2 million in total losses. The incident began with a weak security check in the converter, allowing an attacker to drain 8.72 million FET ($1.54 million) and later claim 408.5 million newly minted NuNet (NTX) tokens worth $463,000.
A security flaw in the Artificial Superintelligence Alliance [FET] token converter led to a significant exploit affecting two separate projects. The vulnerability stemmed from the system accepting a single “approval” without verifying that the associated tokens were actually locked or burned.
After obtaining the private key behind that signature, the attacker created their own approval and withdrew the bridge’s entire FET balance in one transaction, extracting 8.72 million FET worth about $1.54 million. The same wallet cluster later received an additional 408.5 million newly minted NuNet [NTX], valued at roughly $463,000, linking both incidents to a single operator given the shared destination.
The rapid movement of assets suggests an effort to consolidate proceeds quickly. Collectively, these attacks resulted in losses totaling around $2 million, highlighting issues regarding contract security, unauthorized token issuances, and potential sell pressure affecting both ecosystems.
Price data revealed how the exploitation impacted market pressure on each token. The price of NTX fell from approximately $0.00130000 to $0.00005559, representing a 95.7% drop in value following the entry of 408.5 million unauthorized tokens into circulation.
Trading volume for NTX rose 131.6% to $168,080, yet the surge failed to support a recovery, indicating heavy selling pressure and low demand. FET took a different route with respect to pricing, as it had increased in value from $0.1490 to $0.1889, a gain of nearly 27% over three days before the exploit.
The attack on FET pushed its price down to about $0.1711, a roughly 9% decline from its peak. Since the hacker merely transferred existing FET rather than generating additional tokens, there was relatively little dilution of the existing supply, which enabled FET to absorb the impact of the hack.
