Holograph Battles 79.4% Token Fall After $14.4M Hack on Operator Contract
Summary:
Following a significant hack on their operating contract, Holograph's native token plummeted roughly 79.4%. The hacker leveraged a smart contract flaw to illicitly mint 1 billion HLG tokens valued at $14.4 million. Holograph is cooperating with crypto exchanges to freeze the attacker's accounts, and an internal investigation has been launched. The stolen tokens are now being converted into the stablecoin Tether (USDT). The platform has experienced a tumultuous recovery, currently sitting at a rate of $0.008 per token.
The native token of Holograph, a blockchain tokenization platform, experienced a substantial fall of around 79.4% following a significant hack to the protocol's operating contract. The attacker illicitly minted 1 billion HLG tokens with a value of $14.4 million. The breach was officially confirmed by Holograph's X account on 14th June. Subsequently, the initial breach has been fixed and the platform is working in collaboration with its cryptocurrency exchange partners to suspend the accounts of the hacker.
Holograph has also initiated its own internal investigation into the matter while also reaching out to relevant law enforcement agencies. The attacker took advantage of a smart contract flaw to mint the 1 billion HLG tokens across nine interactions, with the initial mint dating back to 13th June at 9:47 am UTC, as per the records on Etherscan.
The attacker dispatched seven parts of 100 million each. It merely took 10 minutes for the HLG's value to nose-dive. Within a period of nine hours, the token value plunged from $0.014 to a local minimum of $0.0029, concurrently reducing HLG's market capitalization from approximately $22 million to just $4.8 million, as per data from CoinGecko. Even though HLG has recuperated marginally to $0.008, this massive drop continues to be a point of concern. The hacker had begun to convert the unlawfully minted HLG into Tether (USDT), a stablecoin, around four hours post initial breach.
Matt Casto, a crypto researcher from venture firm CMT Digital suspects that the attacker may have been an errant developer who funded the operator contract address of Holograph around 26 days ago. Holograph, part of the Omnichain ecosystem, facilitates tokens to transition between blockchains while retaining the same contract address, thus enabling issuers to index cross-chain information. The platform has been backed by venture firms such as Animoca Brands and Mechanism Capital.
Since the inception of the first crypto hack in June 2011, cryptocurrencies close to $19 billion have been purloined, according to a recent report by Crystal Intelligence.
Published At
6/14/2024 5:47:55 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.