Holograph Protocol Experiences Security Breach, Hacker Creates 1 Billion Native HLG Token
By Sujha Sundararajan
Published:
June 14, 2024 06:24 EDT
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Reading Time: 1 min
A malicious attack targeted Holograph, a versatile tokenization protocol, resulting in the creation of 1 billion native HLG tokens being stolen. The cryptocurrency’s value plummeted by almost 80% in the aftermath of the breach.
In a bold move, the hackers managed to mine 1 billion HLG tokens and escape with tokens valued at $14.4 million. Holograph swiftly responded by announcing on X that they had “patched the initial exploit” and were actively working to freeze the accounts of the exploiters.
“The team has successfully patched the initial exploit and is collaborating with our exchange partners to secure the malicious accounts. An investigation has been launched, and authorities have been contacted.”
According to data from Etherscan, the hackers began draining the tokens on June 13 at 9:47 am UTC through a series of nine transactions. The on-chain data revealed that the ENS wallet acc01ade.eth was used in the hack.
Furthermore, Github indicated that the attackers were also contributors to the protocol, having made 113 contributions to Holograph last year.
Holograph’s HLG Token Plummets by Nearly 80%
Following the breach, the price of Holograph Protocol’s native token, HLG, experienced a sharp decline. CoinGecko data showed that the token dropped from $0.014 to as low as $0.0029, marking a 79.4% decrease on Thursday.
Source: CoinGecko
Despite this setback, the token has managed to recover and is currently trading at $0.0063.
Etherscan data revealed that the exploiter began converting the stolen HLG tokens into Tether stablecoin (USDT) four hours after the breach.
This incident occurred months after the Protocol secured $11 million in a strategic funding round from notable VCs. The funding was spearheaded by Andrew Kang’s Mechanism Capital and Jordi Alexander’s Selini Capital.
Holograph had previously stated that the funds would be utilized to enhance its omnichain gaming capabilities. The protocol enables game developers to tokenize assets across multiple chains.
Having launched its mainnet in 2023, Holograph has facilitated the creation of over 10 million omnichain tokens by 1.5 million unique wallets.
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