Griffin AI’s $GAIN Plummets Over 80% After Abnormal Token Minting Attack

Griffin AI, a new player in the AI-blockchain sector, saw its GAIN token crash over 80%, dropping from approximately $0.80 to as low as $0.163. The crash, which resulted in a massive loss in market value, followed an unusual minting and large-scale sell-off shortly after its September 24, 2025, launch. 

According to blockchain security sleuth PeckShieldAlert, 5 million GAIN tokens were exchanged for 2,955 BNB. The tokens were then converted to 720 ETH and moved to Tornado Cash, resulting in the loss of approximately $3 million.

Attacker Swaps Original Contract With Fake

Griffin AI, based in Liechtenstein, launched its GAIN token on September 24, 2025. The platform aims to merge AI with the $800 billion DeFi market. With a maximum supply of 1 billion tokens, GAIN is designed to create AI agents, staking, and paying for computational services.

However, shortly after trading began on platforms like PancakeSwap V3 and major exchanges, serious issues emerged. An attacker set up an unauthorized LayerZero peer. They created a fake Ethereum contract called $TTTTT at the address 0x7a8caf. The fake contract was added as the LayerZero peer for GAIN’s Ethereum endpoint instead of the real ETH token at 0xccdbb9. 

Using this fake peer, the attacker minted 5 billion GAIN on the BNB chain and started selling it on-chain. The attacker then exchanged 2,955 BNB for about $3 million. They quickly moved the BNB to Ethereum and converted it into 720 ETH. They then deposited 700 ETH into Tornado Cash, a privacy mixer often associated with illicit activity. 

Griffin AI Reassures Users

Although Griffin AI had undergone an audit by Hacken before the launch, which confirmed the contract’s security and promised no minting functionality. An investigation later revealed that a mistake during the final deployment had caused the issue. Following the development, the GAIN tokens have reacted negatively, plummeting over 80% as data from Coingecko reveals.

In response to the security breach, Griffin AI’s team assured that its smart contract is safe, attributing the recent issue to external infrastructure. The team announced that it had closed the authorized liquidity pool on the BNB Chain. They also warned users to avoid any pools created by the attacker. 

Additionally, the team froze GAIN trading and deposits with exchanges like Binance Alpha and KuCoin. The platform stated that it is working with auditors to trace stolen funds and will conduct a thorough infrastructure audit. Founder Oliver Feldmeier reassured the community about rebuilding trust.

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