Griffin AI’s token launch turned into a disaster after hackers exploited a cross-chain vulnerability, minting billions of tokens and causing a $2.93 million loss.
The @Griffin_AI ($GAIN) project suffered a malicious mint-and-dump incident. An address first minted 5 billion new tokens on-chain, then immediately dumped 150 million of them, netting 2,955 BNB (approximately $3 million). Ultimately, these funds were rapidly transferred and… pic.twitter.com/cSBZ3lkJIs
— ExVul (@exvulsec) September 25, 2025
The much-anticipated debut of Griffin AI’s token (GAIN) on major crypto exchanges including Binance, KuCoin, MEXC, HTX, Gate, and WEEX quickly spiraled into chaos. Within hours of trading, GAIN lost 90% of its value, forcing the project to suspend all trading, deposits, and withdrawals.
How the Attack Happened for Griffin AI
On-chain investigations revealed a LayerZero configuration flaw in Griffin AI’s cross-chain module. Hackers used this weakness to create a fake Ethereum contract and liquidity pair, allowing them to mint more than 5 billion GAIN tokens on BNB Chain without backing them with the required ETH-based GAIN.
Of these, around 147 million tokens were dumped on PancakeSwap, generating at least 2,955 BNB, worth approximately $2.93 million. The stolen funds were later converted into ETH via deBridge and funneled through TornadoCash, making recovery highly unlikely.
A “Mint-and-Dump” Attack for Griffin AI
The exploit was a classic “mint-and-dump” hack, the third of its kind in less than a week. Similar attacks recently targeted Seedify and UXLink, underscoring the growing risks associated with cross-chain technology.
Cross-chain interoperability has become a major selling point for new crypto projects, as investors demand broader liquidity access. But every new bridge contract introduces potential vulnerabilities, often slipping past even multiple security audits.
Current Status of Griffin AI
Trading of Griffin AI’s token remains suspended. While the ETH version of GAIN was not compromised, project leaders have warned investors against interacting with BNB-based GAIN tokens or liquidity pools, which may still be controlled by the attackers.
This latest hack highlights the urgent need for stronger Web3 security frameworks, as cross-chain exploits increasingly plague the crypto industry.
