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DeFi’s $36M GAIN Hack Reveals Vulnerability in Cross-Chain Security

DeFi’s $36M GAIN Hack Reveals Vulnerability in Cross-Chain Security

Bitget-RWA2025/09/25 08:30
By:Coin World

- Griffin AI's GAIN token suffered a $36M exploit on 2025/9/24 as attackers minted 5B tokens (50x cap), triggering an 87% price crash. - Attackers exploited a misconfigured LayerZero peer to bridge tokens to BSC, selling 98% within hours via PancakeSwap and laundering proceeds through Tornado Cash. - Market cap collapsed from $42.4M to $6.4M as circulating supply exploded 22x, prompting Binance/KuCoin to suspend trading and highlight cross-chain security flaws. - Security experts linked the breach to insid

DeFi’s $36M GAIN Hack Reveals Vulnerability in Cross-Chain Security image 0

On September 24, 2025, Griffin AI’s GAIN token experienced a devastating security breach, where attackers managed to create 5 billion extra tokens—far surpassing the intended 1 billion token limit. This resulted in the token’s value plummeting by 87% and a $36 million loss in market capitalization. The exploit targeted a misconfigured

node on , which allowed the attackers to mint tokens without authorization and transfer them across chains to Binance Smart Chain (BSC). Most of these tokens were sold off within a few hours Griffin AI Token Crash: 90% Drop After Exploit - capwolf.com [ 2 ]. Within a day of the incident, GAIN’s price dropped from $0.25 to $0.0273, while trading activity soared by 133% to $100 million, indicating widespread panic selling and arbitrage Griffin AI Token Crash: 90% Drop After Exploit - capwolf.com [ 2 ].

The attackers set up a fraudulent LayerZero node to circumvent cross-chain security, enabling them to generate 5 billion GAIN tokens on BSC. These tokens were quickly exchanged for 2,956

(worth $3 million) through and private deals, with the proceeds funneled through Tornado Cash and deBridge to networks such as Ethereum and Griffin AI Token Crash: 90% Drop After Exploit - capwolf.com [ 2 ]. Blockchain analysis firms like Lookonchain and CertiK verified the details of the exploit, highlighting the use of privacy services to hide the perpetrator’s identity Hack Turns $GAIN Into Pain, Griffin AI Token Crashes 84% [ 3 ].

The fallout for Griffin AI was severe. The project’s market value plunged from about $42.4 million to $6.4 million, wiping out nearly 82% in just one day Hack Turns $GAIN Into Pain, Griffin AI Token Crashes 84% [ 3 ]. Circulating supply surged from 235 million to 5.235 billion tokens, heavily diluting holders and shaking investor trust. Major exchanges like Binance Alpha, KuCoin, and HTX halted GAIN trading to prevent further damage, while the Griffin AI team warned users to steer clear of unauthorized liquidity pools Griffin AI (GAIN) Plunges 87% Following Mint-and-Dump Attack [ 4 ].

Security professionals pointed out that the attack resembled previous DeFi breaches, highlighting persistent weaknesses in cross-chain systems.

suggested the incident may have involved insider access or social engineering, as the attacker introduced a fake LayerZero node on Ethereum Griffin AI (GAIN) Plunges 87% Following Mint-and-Dump Attack [ 4 ]. This event underscores the ongoing risks associated with rapid project launches and insufficient post-launch security reviews in decentralized finance.

The Griffin AI team has begun working with security experts and asked exchanges to halt GAIN transactions. Nonetheless, restoring user confidence remains a major hurdle. Analysts warn that the project’s recovery will hinge on transparent management, token burning strategies, or deploying new contracts to address the breach’s consequences Griffin AI (GAIN) Plunges 87% Following Mint-and-Dump Attack [ 4 ].

This incident is a stark illustration of the shifting security challenges in DeFi. While cross-chain technologies offer interoperability, they also introduce complex risks that can be exploited. Experts stress the importance of thorough security audits after deployment, layered protection measures, and active community oversight to reduce such threats. For investors, the episode highlights the need for careful research, portfolio diversification, and ongoing monitoring of project updates Griffin AI Token Crash: 90% Drop After Exploit - capwolf.com [ 2 ].

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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