TL;DR:
- An attacker drained approximately $1.56 million in FET tokens from the conversion contract and minted unauthorized tokens linked to SingularityNET’s infrastructure.
- Fetch.ai preemptively halted AGIX-to-FET conversions to safeguard liquidity while forensic audits are completed.
- On-chain security firms identified anomalous withdrawals originating from the TokenConversionManagerV3 contract on the Ethereum network.
Following confirmation of an exploit on the SingularityNET bridge, Fetch.ai made the decision to pause conversions between AGIX and FET tokens. The announcement was made this past Sunday, September 20, after anomalous cross-chain liquidity transfers were detected.
Following reports of an exploit on 19 September, here is where things stand.
> https://t.co/CwbPmOj7TU contracts are not affected. No https://t.co/CwbPmOj7TU contract is under threat at this time, and FET continues to operate normally.
> The attack is targeting SingularityNET…— Fetch.ai (@Fetch_ai) September 20, 2026
The attack compromised the bridge infrastructure between Ethereum and Cardano managed by SingularityNET. The vulnerability allowed unauthorized asset extraction and the irregular minting of millions of units across associated bridge contracts. Fetch.ai confirmed that its native core contracts remain intact and were not directly affected.
Forensic analysis firms like PeckShield managed to trace the attacker, reporting that they accumulated more than $16 million in assets through the illicit minting of AGIX and other related tokens, including NTX and WMTx. PeckShield noted that the lock-and-release mechanism suffered from a critical vulnerability in signature verification.
Fetch.ai’s operational response was to immediately freeze the migration contract. This measure aims to prevent manipulated funds from the SingularityNET ecosystem from being converted into FET on secondary markets.
Technical Details of the Breach and Impact on the Artificial Superintelligence Alliance
The contract identified at the core of the issue is TokenConversionManagerV3 on the Ethereum network. This component governed asset transfers between the two participating organizations of the Artificial Superintelligence Alliance (ASI Alliance).
On-chain security researchers reported that the attacker successfully validated manipulated withdrawal transactions. An industry source indicated that the hacker routed transactions across Ethereum, BNB Chain, and Cardano to obscure the trail of funds.
In the aftermath of the exploit, just hours after the security breach was confirmed, the price of the FET token fell to $0.1773. In its analysis, Coinglass noted that the asset retains immediate support at $0.1697, a level tested over the past week of trading.
Meanwhile, the NTX token of the NuNet protocol experienced a plunge exceeding 65% within hours of confirmation that part of its bridge reserves had been drained.
Both development teams issued joint advisories cautioning users against fraudulent support accounts and fake migration links attempting to exploit the ongoing situation.
The ASI Alliance announced that it will publish a comprehensive technical audit once the review of migration contracts and the implementation of the security patch on the Cardano-Ethereum bridge are finalized.
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