The Artificial Superintelligence Alliance has confirmed an exploit involving its FET token migration and bridge infrastructure after an unauthorized party withdrew approximately $1.56 million worth of FET from the token converter.
ASI Alliance said on September 20 that its team responded immediately and is working with security partners to investigate the incident. The alliance said its treasury and exchange wallets were not affected, while FET held in users’ own wallets or on exchanges remains unaffected.
Holders do not need to take any action, according to the project’s announcement. ASI Alliance said it will publish a full report explaining what happened and how once the investigation is complete.
$1.56 Million in FET Withdrawn From Converter
The affected infrastructure is connected to FET’s migration and bridge architecture on Ethereum.
ASI Alliance said an unauthorized party withdrew approximately $1.56 million in FET from the converter. Security researchers estimated that about 8.7 million FET was removed from the contract.
The incident did not involve the alliance’s treasury wallets or exchange wallets, according to ASI Alliance. The project also specifically said FET held in personal wallets and on exchanges was not impacted.
That means the confirmed loss is concentrated in the token-conversion infrastructure rather than users’ directly held FET.
Security Reports Point to FET Conversion Contract Exploit
Multiple security researchers and news reports have identified the affected FET conversion contract on Ethereum as the point involved in the exploit.
Fetch.ai, one of the projects that later formed the Artificial Superintelligence Alliance alongside SingularityNET and Ocean Protocol. The incident also appears to involve another token within infrastructure connected to the ASI ecosystem.
PeckShield linked the FET drain to an unauthorized issuance of approximately 408.5 million NuNet (NTX) tokens and said both transactions were connected to the same attacker wallet.
The additional activity aligns with ASI Alliance’s statement that the incident involved the FET migration and bridge architecture, as well as other tokens within the same infrastructure.
However, the alliance has not yet released its full technical explanation of how the exploit occurred or confirmed the complete scope of the affected contracts.
Researchers Identify a Possible Authorization Weakness
Preliminary security analysis has provided more detail about how the FET converter was reportedly exploited.
SlowMist said the attacker used a valid authorization signature to call the conversionIn() function of the TokenConversionManagerV3 contract.
According to the firm’s analysis, the function relied on a single externally owned account signature and did not apply the same amount-limit check used by the contract’s conversionOut() function. It also did not verify an on-chain burn or lock corresponding to the conversion.
Security reports said the attacker used a leaked or compromised authorization key to generate a valid message directing the FET to an address controlled by the attacker.
However, this remains preliminary technical analysis. ASI Alliance has not yet released its final incident report explaining how the attacker obtained the authorization credentials or confirming the complete attack path.
Fetch.ai Says Its Contracts Are Not Affected
Fetch.ai separately addressed the incident following reports of the exploit. The project said its contracts were not affected and that “FET continues to operate normally.”
Fetch.ai also said the attack is targeting SingularityNET contracts, particularly the SingularityNET Bridge connecting Ethereum and Cardano, and that the unauthorized mint was carried out through that route.
Fetch.ai said AGIX-to-FET conversions have been paused until further notice. It also temporarily paused its Ethereum-side bridge contract as a precaution, while saying there was no indication that the contract itself was vulnerable.
The company said it had contained the exploit and was working with the SingularityNET team as the investigation continues. The statement provides additional context on the affected infrastructure, but the full relationship between the FET converter activity and the wider bridge exploit remains under investigation.
FET Price Falls After Exploit
FET also came under selling pressure after the exploit became public. CoinMarketCap reported that FET fell roughly 5 to 8% during the initial reaction to the incident. The move occurred alongside broader weakness in the cryptocurrency market.
The price reaction was smaller than NTX’s decline, which was hit by the unauthorized creation of hundreds of millions of tokens. Security reports said NTX fell more than 70% after the incident.
The price movements do not change the project’s current guidance to FET holders. ASI Alliance has said that FET held in personal wallets and on exchanges remains unaffected.
What Comes Next
ASI Alliance is continuing its investigation with security partners and said it will publish a full report once the review is complete. That report should clarify how the attacker obtained authorization, which components were affected, and what steps will be taken to secure the migration and bridge infrastructure.
Security researchers are also monitoring the attacker wallets and related token activity. The additional NTX mint and reports involving other connected infrastructure make the investigation broader than the initial FET withdrawal.
For now, ASI Alliance has told FET holders that no action is required and that FET held in personal wallets and on exchanges was not affected. Users should wait for verified updates from the alliance before interacting with migration or bridge contracts.
What This Means for You: If you hold FET in your own wallet or on an exchange, ASI Alliance says your tokens are not affected, and you do not need to move them. Avoid unsolicited recovery offers or requests to connect your wallet while the investigation is ongoing, and rely on official ASI Alliance updates for any future action.
