Bittensor (CRYPTO:TAO), an AI-centric blockchain, has suspended its network following the theft of $8 million worth of TAO tokens, causing a 17% drop in their value.

The breach, suspected to involve leaked private keys, prompted developers to place the blockchain in "safe mode," pausing transactions to investigate the security exploit.

Analysts discovered that stolen funds were moved to Ethereum (CRYPTO:ETH) via decentralised exchanges, impacting TAO's market price, which briefly plummeted to $227 before recovering to $240.

This incident follows a similar attack in June, highlighting ongoing security challenges in the crypto space where DeFi projects remain prime targets for scams and hacks.