This Token Plummets 80% Following Recent Exploit: Details

The value of the Omnichain Tokenization platform's native token, HLG, fell by nearly 80% following the recent hack.

The malicious actor exploited a vulnerability in the protocol operator's contract and minted 1 billion HLG tokens which were initially worth approximately $14.4 million.

Holographic exploitation

Holograph has confirmed the hack occurred on their X account, assuring users that the initial vulnerability has been patched and that efforts are underway with cryptocurrency exchange partners to freeze the hacker's accounts.

The holograph operator contract was exploited by a malicious actor, enabling the hacker to mint an additional 1 billion HLG

The team has patched the initial exploit and is working with exchange partners to lock down malicious accounts

The team has launched an investigation…

– Holograph (@holographxyz) June 13, 2024

They added that the team has launched an investigation and is in the process of contacting law enforcement authorities.

according to Data From Etherscan The hack began on June 13 at 9:47 a.m. UTC, when the attacker used a smart contract vulnerability to mint tokens in nine transactions. Seven of these transactions involved payouts of 100 million tokens each.

Initially worth $14.4 million, the hacker began converting newly minted HLG into the stablecoin Tether after just four hours of exploitation. At current market values, the value of 1 billion HLG tokens seized by the scalper is worth just over $7 million.

The price of the token dropped just 10 minutes after the attack began. Within nine hours, HLG's value dropped from $0.014 to $0.0029, representing a 79.4% decline. During this period, HLG's market capitalization also declined from approximately $22 million to $4.8 million.

Following the attack, the token was able to recover slightly.

On-chain data points to rogue developers

The on-chain data identified the ENS wallet acc01ade.eth As involved in exploitation. Matt Casto, cryptocurrency researcher at venture capital firm CMT Digital, Proposal The hacker may be a “rogue developer” who prepared for the attack about a month ago.

“It looks like a rogue developer funded the title 26 days ago. This is the title that received the minted offer,” Casto stated.

According to its website, the Holograph protocol operates within the Omnichain ecosystem, which aims to ensure consistent tokenization, seamless interoperability, and secure cross-chain asset transfer across all EVM chains.