Bittensor (CRYPTO:TAO) has halted operations following a security breach that saw approximately $8 million worth of TAO tokens stolen.

The incident forced the network into safe mode, blocking transactions while investigations continue.

Blockchain analyst ZachXBT suspects leaked private keys led to unauthorized access and subsequent token transfers to Ethereum and stablecoins.

This breach caused a 17% drop in TAO's value initially, though it has since recovered to $240.

The incident underscores ongoing security challenges in crypto projects, with 2024 already witnessing over $473 million in losses from hacks and fraud across the industry, primarily targeting DeFi platforms.