Griffin AI’s GAIN Token Crashes Over 90% Following Unauthorized Minting Exploit on BNB Chain

By: crypto insight|2025/09/25 10:40:03

Imagine waking up to your promising new crypto investment tanking overnight, all because of a sneaky hack that floods the market with fake tokens. That’s exactly what happened with Griffin AI’s GAIN token, which saw a devastating drop of more than 90% after hackers pulled off an unauthorized minting spree on the BNB Chain. This isn’t just another bump in the volatile crypto road—it’s a stark reminder of how even cutting-edge projects can face unexpected vulnerabilities. Let’s dive into what went down and what it means for you as an investor or enthusiast.

The Dramatic Plunge of GAIN Token Amid Security Breach

Griffin AI’s GAIN token, freshly launched on Binance Alpha just yesterday, hit a rough patch with a massive security exploit that sent its value spiraling. On-chain records reveal the token experienced a brief but brutal decline exceeding 90% due to unusual minting and rapid selling. The trouble started surfacing early today at 7:04 AM (UTC+8), when a suspicious wallet address 0xF3…8Db2 created 5 billion GAIN tokens out of thin air from a null address. This bloated the total supply to 5.2985 billion tokens. Right after, that same wallet dumped 147.5 million GAIN on PancakeSwap, pocketing at least 2,955 BNB, which was then swiftly bridged away using deBridge.

Think of it like a counterfeit money operation in the real world—suddenly, there’s way more cash floating around, devaluing everything. In crypto terms, this unauthorized minting attack diluted the token’s worth, much like how overprinting currency can lead to inflation. Data from blockchain explorers confirms the scale: the exploit not only inflated supply but also triggered panic selling, amplifying the plunge.

How the Unauthorized LayerZero Peer Setup Enabled the Attack

Digging deeper, Griffin AI’s team pinpointed the culprit as a rogue LayerZero peer configuration. Sleuths found that the attacker set up a phony Ethereum contract, dubbed $TTTTT at address 0x7a8caf. This imposter was slyly positioned as the LayerZero peer for GAIN’s Ethereum endpoint, overriding the legitimate one at 0xccdbb9. With this switcheroo, the hacker gained the power to mint billions of GAIN tokens directly on the BNB Chain. From there, it was a quick pivot to dumping them into liquidity pools, cashing out big time.

It’s akin to someone forging a key to your bank’s vault and printing money unchecked—except in the decentralized world, where integrations like LayerZero are meant to bridge chains securely but can become weak links if tampered with. Griffin AI’s official X posts detailed this sequence, emphasizing how the fake setup bypassed normal safeguards, leading to the chaos.

Griffin AI’s Swift Response and Exchange Collaborations

Oliver Feldmeier, the founder and CEO of Griffin AI, outlined the events, stressing that the bogus LayerZero peer directly facilitated the minting and subsequent dumping. To shield users, the team promptly pulled all official liquidity for GAIN on the BNB Chain. They also issued strong warnings against touching any attacker-created liquidity pools, which could pose even more dangers.

On top of that, Griffin AI has been proactive in looping in centralized exchanges, asking them to halt trading, deposits, and withdrawals of GAIN on the Binance Smart Chain (BSC). This move is designed to crimp the attacker’s ability to move funds while security teams coordinate a fix. It’s a smart play, contrasting with past exploits where delays let hackers escape unscathed—here, quick action could minimize long-term damage.

In the midst of these crypto turbulence, platforms like WEEX exchange stand out for their robust security features and user-friendly trading environment. WEEX prioritizes top-tier protection with advanced encryption and real-time monitoring, making it a reliable choice for traders navigating volatile markets like this one. By aligning with innovative projects and offering seamless access to tokens on chains like BNB, WEEX enhances your trading experience while building trust through transparent operations and low-fee structures that keep you ahead in the game.

Enhanced Security Protocols and What Lies Ahead for Griffin AI

The breach’s magnitude is clear from the attacker’s wallet 0xF3…8Db2, which still clutches a hefty chunk of the excess GAIN supply. Griffin AI is teaming up with security experts for ongoing probes, with more updates promised as they collaborate with exchanges and infrastructure teams to curb the fallout.

Amid this, it’s worth highlighting Griffin AI’s TEA Turbo model, which aims to make DeFi more accessible through a self-custodial, deterministic framework. This setup cuts down on counterparty risks by ditching centralized oversight and condensing intricate on-chain tasks into one straightforward interface. Yet, as this minting exploit shows, even forward-thinking designs aren’t immune when key connections get hijacked—much like how a high-tech car can still be hot-wired if the alarm fails.

Griffin AI noted that the Ethereum-based GAIN remains untouched and fully functional, providing some stability amid the storm. Drawing parallels, this incident echoes past DeFi hacks but stands out for the project’s rapid response, which could set a stronger precedent compared to slower recoveries in similar cases.

As of today, September 25, 2025, latest on-chain data shows the GAIN token stabilizing slightly, with trading volumes up 15% in the last 24 hours per blockchain analytics, though prices hover around 85% below pre-exploit levels. Recent Twitter buzz has centered on discussions about LayerZero vulnerabilities, with users frequently searching Google for “how to secure cross-chain tokens” and “latest BNB Chain exploits.” Trending topics include #GAINExploit and #LayerZeroHack, where community posts speculate on recovery plans. Official announcements from Griffin AI’s X account, posted just hours ago, confirm they’ve implemented temporary smart contract pauses and are planning a token snapshot for potential airdrops to affected holders, aiming to restore confidence.

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FAQ

What caused the GAIN token to plunge so dramatically?

The drop stemmed from an unauthorized minting attack where a fake LayerZero peer allowed hackers to create and dump billions of tokens on BNB Chain, inflating supply and eroding value—resulting in a over 90% price crash.

Is the Ethereum version of GAIN affected by this exploit?

No, Griffin AI has confirmed that the Ethereum-based GAIN token is unaffected and continues to function normally, isolated from the BNB Chain issues.

What steps is Griffin AI taking to prevent future attacks?

The team is collaborating with security partners to investigate, has removed liquidity on BNB Chain, and is urging exchanges to suspend transactions while enhancing protocols like their TEA Turbo model for better risk management.

Over the past 24 hours, the crypto market has shown strong momentum across multiple dimensions. The mainstream discussion has focused on Coinbase's official entry into the prediction market through the acquisition of The Clearing Company, as well as the intense controversy within the AAVE community regarding token incentives and governance rights.

In terms of ecosystem development, Solana has introduced the innovative Kora fee layer aimed at reducing user transaction costs; meanwhile, the Perp DEX competition has intensified, with the showdown between Hyperliquid and Lighter sparking widespread community discussion on the future of decentralized derivatives.

I. Mainstream Topics

1. Coinbase Acquires The Clearing Company, Officially Entering Prediction Market

This week, Coinbase announced the acquisition of The Clearing Company, marking another significant move to deepen its presence in this field after last week's announcement of launching a prediction market on its platform.

The Clearing Company's founder, Toni Gemayel, and the team will join Coinbase to jointly drive the development of the prediction market business.

Coinbase's Product Lead, Shan Aggarwal, stated that the growth of the prediction market is still in its early stages and predicts that 2026 will be the breakout year for this field.

The community has reacted positively to this, generally believing that Coinbase's entry will bring significant traffic and compliance advantages to the prediction market. However, this has also sparked discussions about the industry's competitive landscape.

Jai Bhavnani, Founder of Rivalry, commented that for startups, if their product model proves to be successful, industry giants like Coinbase have ample reason to replicate it.

This serves as a reminder to all entrepreneurs in the crypto space that they must build significant moats to withstand competition pressure from these giants.

2. Kalshi Launches Kalshi Research and Integrates BSC Network

Regulated prediction market platform Kalshi launched its research arm, Kalshi Research, this week, aimed at opening its internal data to the academic community and researchers to facilitate exploration of prediction market-related topics.

Its inaugural research report highlights Kalshi's outperformance in predicting inflation compared to Wall Street's traditional models. Kalshi co-founder Luana Lopes Lara commented that the power of prediction markets lies in the valuable data they generate, and it is now time to better utilize this data.

Meanwhile, Kalshi announced its support for the BNB Chain (BSC), allowing users to deposit and withdraw BNB and USDT via the BSC network.

This move is seen as a significant step for Kalshi to open its platform to a broader crypto user base, aiming to unlock access to the world's largest prediction market. Furthermore, Kalshi also revealed plans to host the first Prediction Market Summit in 2026 to further drive industry engagement and development.

3. AAVE Token Incentive Controversy Persists as Founders and Whales Increase Holdings Against the Market Trend

The AAVE community recently engaged in heated debates around an Aave Improvement Proposal (AIP) titled "AAVE Tokenomics Alignment Phase One - Ownership Governance," aiming to transfer ownership and control of the Aave brand from Aave Labs to Aave DAO.

Aave founder Stani Kulechov publicly stated his intention to vote against the proposal, believing it oversimplifies the complex legal and operational structure, potentially slowing down the development process of core products like Aave V4.

The community's reaction was polarized. Some criticized Stani for adopting a "double standard" in governance and questioned whether his team had siphoned off protocol revenue, while others supported his cautious stance, arguing that significant governance changes require more thorough discussion.

This controversy highlights the tension between the ideal of DAO governance in DeFi projects and the actual power held by core development teams.

Despite governance disputes putting pressure on the AAVE token price, on-chain data shows that Stani Kulechov himself has purchased millions of dollars' worth of AAVE in the past few hours.

Simultaneously, a whale address, 0xDDC4, which had been quiet for 6 months, once again spent 500 ETH (approximately $1.53 million) to purchase 9,629 AAVE tokens. Data indicates that this whale has accumulated nearly 40,000 AAVE over the past year but is currently in an unrealized loss position.

The founder and whale's increased holdings during market volatility were interpreted by some investors as a confidence signal in AAVE's long-term value.

4. Top Articles: DeFi Curators and Ethereum Annual Summary

In this week's top article, Morpho Labs' "Curator Explained" detailed the role of "curators" in DeFi.

The article likened curators to asset managers in traditional finance, who design, deploy, and manage on-chain vaults, providing users with a one-click diversified investment portfolio.

Unlike traditional fund managers, DeFi curators execute strategies automatically through non-custodial smart contracts, allowing users to maintain full control of their assets. The article offered a new perspective on the specialization and risk management in the DeFi space.

Another widely circulated article, "Ethereum 2025: From Experiment to Global Infrastructure," provided a comprehensive summary of Ethereum's development over the past year. The article noted that 2025 is a crucial year for Ethereum's transition from an experimental project to global financial infrastructure. Through the Pectra and Fusaka hard forks, Ethereum achieved significant reductions in account abstraction and transaction costs.

Furthermore, the SEC's clarification of Ethereum's "non-securities" nature and the launch of tokenized funds on the Ethereum mainnet by traditional financial giants like JPMorgan marked Ethereum's gaining recognition from mainstream institutions. The article suggested that whether it is the continued growth of DeFi, the thriving L2 ecosystem, or the integration with the AI field, Ethereum's vision as the "world computer" is gradually becoming a reality.

II. Mainstream Ecosystem Updates

1. Solana: Launches Kora Fee Layer and propAMM Data Research

The Solana Foundation engineering team released a fee layer solution called Kora this week.

Kora is a fee relayer and signatory node designed to provide the Solana ecosystem with a more flexible transaction fee payment method. Through Kora, users will be able to achieve gas-free transactions or choose to pay network fees using any stablecoin or SPL token. This innovation is seen as an important step in lowering the barrier of entry for new users and improving Solana network's availability.

Additionally, a deep research report on propAMM (proactive market maker) sparked community interest. The report's data analysis of propAMMs on Solana like HumidiFi indicated that Solana has achieved, or even surpassed, the level of transaction execution quality in traditional finance (TradFi) markets.

For example, on the SOL-USDC trading pair, HumidiFi is able to provide a highly competitive spread for large trades (0.4-1.6 bps), which is already better than the trading slippage of some mid-cap stocks in traditional markets.

Research suggests that propAMM is making the vision of the "Internet Capital Market" a reality, with Solana emerging as the prime venue for all of this to happen.

2. Perp DEX: Hyperliquid vs. Lighter Competition Intensifies

The competition in the perpetual contract DEX (Perp DEX) space is becoming increasingly heated.

In its latest official article, Hyperliquid has positioned its emerging competitor, Lighter, alongside centralized exchanges like Binance, referring to it as a platform utilizing a centralized sequencer. Hyperliquid emphasizes its transparency advantage of being "fully on-chain, operated by a validator network, and with no hidden state."

The community widely interprets this as Hyperliquid declaring "war" on Lighter. The technical differences between the two platforms have also become a focal point of discussion: Hyperliquid focuses on ultimate on-chain transparency, while Lighter emphasizes achieving "verifiable execution" through zero-knowledge proofs to provide users with a Central Limit Order Book (CLOB)-like trading experience.

This battle over the future direction of decentralized derivatives exchanges is expected to peak in 2026.

Meanwhile, discussions about Lighter's trading fees have surfaced. Some users have pointed out that Lighter charged as much as 81 basis points (0.81%) for a $2 million USD/JPY forex trade, far exceeding the near-zero spreads of traditional forex brokers.

Some argue that Lighter does not follow a B-book model that bets against market makers, instead anchoring its prices to the TradFi market, and the high fees may be related to the current liquidity or market maker balance incentives. Providing a more competitive spread for real-world assets (RWA) in the highly volatile crypto market is a key issue Lighter will need to address in the future.

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