Decentralized AI project Bittensor has temporarily suspended its blockchain network following an $8 million theft of TAO tokens.

The theft resulted in a 15% drop in TAO token value.

The attack compromised multiple user wallets, including one that lost 32,000 TAO tokens.

Bittensor responded by putting the blockchain into 'safe mode' to contain the damage.

Despite the incident, Bittensor retains a strong position in the AI crypto ecosystem with a $1.6 billion market cap.

Validators such as RoundTable 21 have reassured users that their funds are secure.

The TAO Foundation is actively investigating the security breach.

Bittensor's innovative technology, which connects global machine learning models, continues to draw interest in the crypto sector.