The Opentensor Foundation, developers of the Bittensor (CRYPTO:TAO) chain, swiftly addressed a recent security breach affecting their network, impacting users who downloaded a compromised package from PyPi.

Prompt actions were taken after detecting unauthorised access to unencrypted coldkey details, leading to the activation of safe mode on Subtensor and firewall protection for Opentensor chain validators.

The breach, identified shortly after an abnormal transfer volume was noticed, involved a malicious package that extracted sensitive data and sent it to an external server controlled by attackers.

Users of Bittensor version 6.12.2, particularly those involved in staking and token transfers, were primarily affected, while others using third-party applications or not engaging in specific operations were likely spared.

Investigations are ongoing to determine the root cause, with preventive measures already in place to safeguard against future incidents.