An attacker drained $1.54 million in FET from Fetch.ai's Ethereum token converter, then the same wallet cluster received 408.5 million newly minted NuNet (NTX) tokens worth about $463,000. Combined losses reached around $2 million, and NTX's price collapsed 95.7% as the unauthorized tokens hit the market.
An attacker exploited a weak security check in Fetch.ai's Ethereum-based token converter, withdrawing 8.72 million FET worth about $1.54 million in a single transaction. The same wallet cluster then received 408.5 million newly minted NuNet (NTX) tokens worth roughly $463,000, and the shared destination links both incidents to one operator. Combined, the two attacks resulted in losses totaling around $2 million.
How the converter was breached
The Artificial Superintelligence Alliance's FET token converter, a smart contract meant to control token issuance, accepted a single approval without verifying that the approved tokens were actually locked or burned. After obtaining the private key behind that signature, the attacker created their own approval and drained the bridge's entire FET balance. The rapid movement of the stolen assets afterward suggests an effort to consolidate the proceeds quickly.
Together, the incidents highlight issues around contract security, unauthorized token issuance, and potential sell pressure on both ecosystems.
NTX takes the bigger hit
NTX absorbed the sharper blow: its price fell from about $0.00130000 to $0.00005559, a 95.7% drop, as the 408.5 million unauthorized tokens entered circulation. Trading volume rose 131.6% to $168,080, but the surge failed to support a recovery, a sign of heavy selling against low demand.
FET absorbs the shock, but an overhang remains
FET took a different path. Before the exploit, it climbed from $0.1490 to $0.1889, a gain of nearly 27% over three days. The attack then pushed it down to about $0.1711, a roughly 9% decline from its peak. Because the hacker transferred existing FET rather than minting new supply, dilution stayed limited, which helped FET absorb the impact.
Still, the 8.7 million stolen FET equals about 0.038% of circulating supply, manageable against current trading volume but a source of caution. Much of the stolen value has already moved out of the wallets, reducing exposure to a direct sell-off for now. However, any remaining FET could re-enter the market at any time, an overhang that will weigh on the token until the funds are traced or depleted.
Source: AMBCrypto
Trading involves risk.
Risk Disclaimer
