GRIFFIN AI

DESCRIPTION OF EVENTS

Griffin AI is a no-code AI agent builder specifically designed for the decentralized finance (DeFi) ecosystem. It enables users to create, deploy, and manage autonomous AI agents without any coding experience. These agents operate on real-time data and are fully integrated with multiple major blockchains including Ethereum, Binance Smart Chain, Polygon, Optimism, and more. Griffin AI's platform includes a live Agent Builder, a community-driven Agent Playground, and an upcoming Marketplace for monetizing AI agents. The goal is to democratize access to advanced DeFi tools by removing the technical barriers traditionally associated with AI development.

The Griffin AI toolkit empowers users with powerful capabilities such as real-time crypto data APIs, technical analysis tools, curated Web3 news feeds, and smart web crawlers for DAO and protocol research. Flagship agents like the Transaction Execution Agent (TEA) and ELANN.AI handle critical tasks like on-chain trading, staking, and multilingual research directly through natural language. Another key offering, Alpha Hunter, scans over 950 decentralized exchanges to detect promising new listings and trading signals, helping users identify alpha-generating opportunities across chains. These agents can be used within popular crypto wallets like MetaMask, Ledger, and Trust Wallet, making Griffin AI highly accessible.

With over 15,000 agents built by a community of 250,000+ users, Griffin AI is rapidly becoming a leading infrastructure provider for DeFi automation. The platform aims to fill a significant market gap by enabling projects to integrate AI-driven agents into their operations without hiring specialized teams. Founder Oliver Feldmeier, a seasoned crypto entrepreneur, emphasizes that Griffin is pioneering agentic technology for a trillion-dollar DeFi market where 95% of projects still lack AI integration. By partnering with platforms like Bithumb, Burrito Wallet, and Smart Valor, Griffin AI is solidifying its role as a cornerstone of the next generation of decentralized finance

The Griffin AI exploit resulted in a significant loss just 24 hours after its Binance Alpha launch. The source was traced by QuillAudits to the compromise of an admin externally owned account (EOA). The attacker used this access to manipulate LayerZero’s peer validation system—a critical component of its cross-chain infrastructure. By calling the setPeer function from the compromised admin wallet, the attacker configured a malicious token contract on Ethereum to be recognized as a legitimate peer of Griffin AI’s official token contract on BNB Chain. This false trust relationship enabled the attacker to mint 5 billion fake $GAIN tokens, drastically inflating the supply beyond its intended 1 billion cap.

The attacker deployed a fraudulent OmniFungible Token (OFT) on Ethereum and established the GriffinAI token contract on BNB Chain as its peer. With both ends falsely linked via LayerZero’s peer system, they bridged the fake tokens from Ethereum, triggering the minting of an equal amount of real $GAIN tokens on BNB Chain. These newly minted tokens were rapidly swapped for stablecoins on PancakeSwap. The attacker then bridged the funds to Ethereum using deBridge, converting them to approximately 876 ETH. To cover their tracks, most of the ETH was laundered through Tornado Cash, with only around 29 ETH remaining traceable.

Losses were reported as $3m by the project founder, as that's what the tokens were liquidated for.

Quill Audits reported the total loss as $3.5M USD.

The Griffin AI team swiftly shut down the compromised peer setup, froze liquidity, and began a full token migration. CEO Oliver Feldmeier announced a new, fully audited $GAIN token with a 1:1 replacement for legitimate holders, as well as a combined $2.5 million USDT buyback initiative to restore value and confidence. They also notified exchanges, halted $GAIN trading, and involved law enforcement.

Oliver Feldmeier, the CEO, provided key updates on the project's response and recovery efforts. The exploit, which occurred due to a compromised admin wallet and a misconfigured LayerZero bridge, resulted in the minting of 5 billion counterfeit $GAIN tokens. Approximately 2.8% of these counterfeit tokens, worth around $3 million, were dumped on PancakeSwap, tanking the token's value. However, the official $GAIN token on Ethereum was unaffected. Unfortunately, the stolen funds were laundered via Tornado Cash, rendering them unrecoverable.

To address the damage, Griffin AI decided to launch a new, fully audited $GAIN token. A snapshot of legitimate balances, taken just before the exploit occurred, will serve as the basis for distributing the new tokens to holders. Users who held tokens in personal wallets will receive the new tokens via airdrop, while exchanges will manage the distribution for users with funds on their platforms. The team emphasized the importance of caution, warning users against engaging with the counterfeit tokens still circulating on decentralized exchanges, as they were controlled by the attacker and could be dumped at any time.

The Griffin AI project relaunched a new token at a different address, and discontinued the use of the original token. Holders of the previous token were restored with balances taken prior to the hack. New purchasers who bough the discount tokens after the hack were resolved on a case by case basis.

Feldmeier reassured the community that Griffin AI would continue its development and growth, including upcoming activities like Season 2. He acknowledged the efforts of the community in supporting the project during this crisis and expressed confidence in overcoming the incident. The team is also working on a fair process for post-incident buyers and investigating ways to handle situations such as missed or disputed airdrops. Although the attack caused significant disruption, Griffin AI remains committed to its long-term vision and is working diligently to restore trust and stability.

Griffin AI, a no-code platform for creating AI agents in DeFi, suffered a major exploit when a compromised admin wallet and misconfigured LayerZero bridge allowed hackers to mint 5 billion counterfeit $GAIN tokens, flooding the market and causing a loss of $3 million. In response, Griffin AI launched a fully audited new $GAIN token, offering a 1:1 replacement for legitimate holders, and implemented a $2.5 million USDT buyback initiative. The project froze liquidity, halted trading, and notified exchanges, while also working on a fair process for post-incident buyers and addressing missed or disputed airdrops. Despite the setback, CEO Oliver Feldmeier assured the community that Griffin AI is committed to its long-term goals and will continue its development in the DeFi space.

Oliver Feldmeier - "Dear Griffins, I've spent the weekend speaking with many of you, answering questions scattered across replies. Today's update brings that entire conversation to one place. We are moving forward with our migration plan, and the cornerstones of this progress are laid out in the Q&A thread below." - Twitter/X (Oct 6)
Oliver Feldmeier - "What exactly happened during the hack? A: On Sep 24, attackers exploited a misconfigured LayerZero bridge setup & a compromised key for the GAIN BSC contract. By setting a malicious peer on Ethereum, they bypassed checks and minted 5 billion counterfeit GAIN on BSC." - Twitter/X (Oct 6)
Griffin AI Exploit: Admin EOA Compromise Explained (Oct 6)
The wait is over: Griffin AI is re-launching its GAIN token on major exchanges - Griffin AI Blog (Oct 6)
Attack Transaction - BSCScan (Oct 6)
@Griffin_AI Twitter (Oct 6)
Griffin AI Twitter/X Account (Oct 6)
Griffin AI Homepage (Oct 6)
@OliFeldmeier Twitter (Oct 6)

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