Worldcoin Rival Humanity Protocol’s Token Crashes 88% as $30M Wallet Drain Sparks Security Panic
Humanity Protocol’s native token – H token – dramatically collapsed by practically 88% on June 9 after falling from round $0.78 to just about $0.099.
The steep decline got here after stories emerged of a serious safety incident involving wallets related to the protocol.
Multi-Million Dollar Hack
On-chain investigator Specter first raised the alarm and revealed that greater than 17 wallets holding H tokens have been drained. Separate stories indicated that attackers stole non-public keys tied to the undertaking and drained greater than $30 million from these wallets.
Humanity Protocol later confirmed {that a} safety incident had occurred. In a publish on X, the staff behind the blockchain identification community revealed that non-public keys belonging to a member of the Humanity Foundation had been compromised. It urged customers to not work together with the bridge or any liquidity swimming pools till additional discover.
“We are actively working with main safety specialists and our trade companions to evaluate the scope of the incident and safe all affected methods. We’re deeply sorry that this has occurred. Protecting this group is our accountability, and we don’t take that frivolously.”
Not everybody accepted Humanity Protocol’s clarification of the incident. On-chain investigator ZachXBT pushed again in opposition to the undertaking’s account on X and accused the staff of aggressively selling the token for weeks whereas providing little underlying worth. He additionally referred to as on the undertaking to disclose any lively market maker agreements involving a Hong Kong entity.
In a separate publish, ZachXBT went on to claim that the safety breach appeared “presumably staged” and added that “it’s a handy means for the lively MM to have exited.”
Humanity Protocol is a blockchain-based identification undertaking that lets individuals confirm they’re actual people. It makes use of biometric knowledge and privateness know-how so customers can show their identification with out sharing private data.
It was launched on mainnet final yr and shortly gained traction as a rival to Sam Altman’s Worldcoin (now rebranded to World Network).
Attacker Cashes Out Millions
According to blockchain analytics platform Lookonchain, the attacker continued minting H tokens after the exploit, first creating 100 million H tokens on BNB Smart Chain earlier than minting one other 100 million. The hacker was discovered to have already bought a portion of the tokens, acquiring 18,510 ETH price roughly $30.83 million and 1,548 BNB valued at round $924,000.
Despite these gross sales, the attacker nonetheless holds about 111.36 million H tokens, which is price nearly $14 million at present costs. However, Lookonchain asserted that on-chain liquidity for the token is now practically exhausted.
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