Over the past several days, we've been working around the clock to understand the security incident that impacted the ORO subnet owner wallet on July 13th.
First, the most important thing: the subnet is fully operational. The breach was contained to only the SN15 owner wallet, which had 147K Alpha Tokens transferred to the attacker.
The team has worked closely with the
@opentensor,
@CrucibleLabs,
@ConnitoAI, Crypto Exchanges, Law Enforcement, and members of the community to identify the root cause and have filed reports with the necessary authorities in an attempt to recover some of the funds that were stolen.
We believe that the source of the breach was a team member’s computer that had been compromised and exfiltrated the owner wallet. The team is still gathering information to determine exactly how this happened. We do have evidence pointing to a single attacker behind both our and Connito's incidents. There is no evidence that the Crucible Wallet is the source of this attack. When we have more information, we will share the full post-mortem with the community to ensure this doesn't happen to anyone else in Bittensor.
When we bought the subnet slot, we'd decided both the validator and the owner wallet would sit on hardware wallets. In a coordination lapse, the owner key was set up as a software wallet instead. That was inexcusable, and it was our mistake. We are truly sorry for the impact this has had on our community and our supporters.
This incident reinforced an important lesson for the team: building great products also requires continuously evolving our operational security.
As part of that commitment, we've already implemented or are implementing:
• A coldkey swap of SN15 ownership.
• Multi-signature hardware protection for the subnet owner keys.
• A Conviction lock on owner emissions.
• Additional internal operational security controls and reviews.
Our priority now is rebuilding the community's trust and continuing to ship improvements to the subnet. For those who have stuck by our side, we thank you for your continued support. The best is yet to come.
Yours,
ORO