FET Volatility: Exploit Drains $1.5M, Hits NuNet Too

Understanding the Volatility in Artificial Superintelligence Alliance (FET)

Artificial Superintelligence Alliance (FET) experienced significant volatility due to a security exploit on its Ethereum token converter, which led to a sharp selloff followed by a partial recovery.

Direct Catalyst: Exploit On FET’s Token Converter

Multiple security reports and news pieces describe a concrete exploit on a Fetch.ai / Artificial Superintelligence Alliance contract that handled FET conversions on Ethereum. Blockaid and other security firms reported that an attacker used a valid authorization signature to call the conversionIn function on the TokenConversionManagerV3 contract and drain the converter’s remaining FET inventory, roughly $1.56 million worth at the time. This is detailed in a Fetch.ai and NuNet exploit report. A longer technical breakdown notes about 8.7 million FET (around $1.55 million) were taken from the token converter using compromised backend signing keys tied to the SingularityNET cross‑chain bridge, with the attack executed as a valid but unchecked signature on chain. This is outlined in a Bitcoin.com security analysis. Crypto calendar and X posts flagged this as a “bridge exploit incident” for FET with a non‑trivial impact score, and social commentary described it as “a security shock” where “roughly 8.7M FET were drained,” specifically citing the Ethereum token converter exploit on the Artificial Superintelligence Alliance infrastructure. You can see this in posts like this incident alert and this security commentary thread.