Griffin AI Exploited: 5 Billion GAIN Tokens Minted

Griffin AI’s GAIN token was exploited due to a LayerZero peer misconfiguration, allowing attackers to mint 5 billion tokens and crash its price by over 87%. The attacker used contract manipulation to dump and convert stolen funds across networks.

Griffin AI’s GAIN token experienced an attack less than a day after launch due to a LayerZero peer configuration error enabling illicit minting.

The incident underscores potential vulnerabilities in cross-chain protocols, sparking immediate market reactions amid ongoing investigations.

Griffin AI’s GAIN token, launched with much anticipation, was soon embroiled in controversy as an attacker manipulated a misconfigured LayerZero peer. This allowed them to mint 5 billion GAIN tokens, causing a significant 87% price drop. Despite the project’s efforts to remedy the situation, market confidence was severely hit. According to GoPlus Security, “The attacker (likely insider or via social engineering attack) added a fake LayerZero Peer on Ethereum, minted fake tokens, and used it to bypass cross-chain checks…”

The fallout was severe, as markets scrambled to contain the damage. The Griffin AI team quickly withdrew liquidity from the BNB Chain to cushion token holders. Many exchanges were advised to halt activity concerning GAIN tokens. Financial estimates show that approximately $3–$4 million was funneled through multiple blockchain networks before conversion.

Experts warn that such events could lead to intensified scrutiny of cross-chain protocols like LayerZero. Concerns about security configurations remain prevalent, with similar incidents in the past highlighting systemic vulnerabilities. Continued analysis and new security measures might emerge to address these risks effectively.

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