Hack Turns $GAIN Into Pain: Griffin AI Token Plummets 84% in Brutal Exploit

Another day, another crypto project learns the hard way that smart contracts aren't always so smart.

The Exploit Unpacked

Griffin AI's token $GAIN got absolutely hammered—plunging 84% in a textbook flash loan attack that drained liquidity pools dry. Hackers manipulated price oracles to borrow massive sums, execute trades at artificial prices, then vanish with the profits.

Security Theater Exposed

The attack exposes the recurring nightmare of decentralized finance: protocols boasting AI-powered security that can't even handle basic economic exploits. Audits? Apparently just expensive wallpaper when the structural flaws run this deep.

Market Fallout

Investors watched their positions evaporate in real-time—another brutal reminder that in crypto, your gains are only as secure as the weakest line of code. The 84% crash puts Griffin AI alongside a growing graveyard of "innovative" projects that forgot to innovate on security first.

Just another Tuesday in digital asset land—where the only thing rising faster than token prices is the sophistication of attacks against them. Maybe next time spend less on marketing and more on penetration testing?

Lookonchain tracks stolen funds

On-chain analytics platform Lookonchain also confirmed the attacker’s moves, noting that 2,956 BNB (worth around $3 million) was swapped during the exploit. The funds were later converted into Ethereum (ETH) before being funneled into Tornado Cash.

Lookonchain also provided several wallet addresses related to the hack, such as 0x107E83E…, 0xB31BDD…, and so on. Such addresses are now tagged as suspicious, but it is not clear that the funds will be recovered, considering the use of privacy tools.

5B $GAIN was abnormally minted, part of which was sold for 2,956 $BNB($3M).

The funds were then bridged to #Ethereum via deBridge, swapped for $ETH, and deposited into #TornadoCash.

Address:
0x107E83EBE677DDec253C440127F23310720177c2
0xB31BDDb3d1c2b45E5c5fE149Aa4c8304e9D1916C… pic.twitter.com/5iHtBTUdjx

Market impact and price crash

The hack severely affected the price and liquidity of $GAIN. The trading volume of the token increased over 400% in the hours after the exploit, with the token experiencing panic selling and arbitrage trading.

According to CoinMarketCap data, the market capitalization of $GAIN also dropped by almost 81.66% to $4.6 million in a day. This sharp fall is an indication of the dilution of the 5 billion minted tokens as well as the loss of investor confidence.

The Griffin AI exploit highlights the fact that cross-chain bridges and token minting vulnerabilities are very risky. Having cost millions and destroyed trust, the incident is a lesson to both investors and developers: in crypto, a single exploit can kill trust in a single night.

Also Read: SHIB Burn Rate Soars 1400% Amid Hack and Whale Activity