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GAIN Token Price Collapse Linked to Massive Mint-and-Dump Attack
On-chain investigations revealed that GAIN token’s sudden price collapse was caused by an attacker minting an additional 5 billion tokens and flooding the market, devastating early investors and raising security alarms.
What is Griffin AI and GAIN Token?
Griffin AI is a no-code platform powering over 15,000 autonomous AI agents for transaction execution, research, and yield farming. The GAIN token fuels this ecosystem by granting access to advanced AI agents, service credits, and operator collateral. It launched on Binance Alpha on September 24, 2025, alongside listings on KuCoin, HTX, MEXC, and Gate.io, but soon suffered a dramatic price drop.
Unusual On-Chain Activity Sparks Crash
Data showed that a suspicious wallet minted 5 billion new GAIN tokens, inflating supply from 1 billion. The attacker moved funds through Tornado Cash and converted tokens on PancakeSwap, cashing out nearly $3 million in BNB. These funds were dispersed into multiple wallets, then partially obscured using Tornado Cash for anonymity.
Exploit Traced to Fake LayerZero Peer
Security firm GoPlus confirmed the breach resulted from an unauthorized LayerZero peer setup, allowing the attacker to bypass cross-chain checks and mint fake tokens. This exploit mirrors a previous attack on the Yala project. GoPlus noted, “The attacker (likely insider or social engineering) added a fake LayerZero Peer on Ethereum, minted fake tokens, and minted 5 billion GAIN on BSC.”
Community Reaction and Team Response
The incident triggered widespread criticism, with users decrying the exploit as fraudulent. Griffin AI’s team responded on X, confirming the exploit and warning users to avoid interacting with any suspicious liquidity pools created by the attacker. They also paused authorized liquidity pools on BNB Chain and urged exchanges to freeze GAIN trading.
While mitigation efforts are underway, the breach has severely damaged trust and raised questions about the token’s future trajectory.
