Holograph Hacked, Token Drops 60% as 1 Billion Tokens Minted

The native token of the Holograph protocol (HLG) plummeted by as much as 60% after a malicious actor exploited a vulnerability to mint 1 billion HLG tokens.

The native token of the Holograph protocol (HLG) crashed by as much as 60% after a vulnerability was exploited to mint 1 billion HLG tokens.

The hack inflated the token’s supply by 66%, causing its price to drop to $0.0064 from $0.014. The token’s market cap also crashed to $10 million from $22 million.

The Holograph protocol, which enables a single contract address across all EVM blockchains for consistent tokenization, interoperability, and secure cross-chain asset transfers, announced the incident on its X page.

“The team has launched an investigation & is in the process of contacting law enforcement,” the protocol stated.

The 1 billion HLG tokens minted by the exploiter are valued at slightly more than $6.7 million at current market prices. On-chain data suggests that the ENS wallet acc01ade.eth was involved in the exploit. This wallet appears to belong to a contributor to the project, based on information from a Github page and a corresponding X profile that describes the individual as a “super shadowy coder” based in Paris.

On June 13, the hacker exploited a vulnerability in the protocol’s code, minting the additional 1 billion HLG tokens through nine transactions. The hacker began converting these tokens into Tether (USDT) four hours after the indecent. Holograph announced on June 14 that it had patched the vulnerability and was working with exchange partners to lock the malicious accounts.

Matt Casto, a crypto researcher at venture capital firm CMT Digital, suggested the hacker might be a “rogue developer.” “Looks like a rogue dev who funded the address 26 days ago,” Casto said. “That address was the one who received the minted supply.”

This incident is the latest in a series of security breaches highlighting the vulnerability of web3 protocols to both internal and external threats. For instance, PumpFun was attacked on May 15 by a hacker who stole 12,300 SOL, valued at $1.9 million at the time. PumpFun later revealed that a former employee was responsible for the exploit, using flash loans to illegitimately take control of the withdraw authority.

Similarly, UwU Lend, an Ethereum-based lending and liquidity protocol, suffered two exploits within a week. On June 13, UwU Lend was hacked, resulting in a loss of $3.72 million, following an earlier hack on June 10 where $19.3 million was stolen.

Holograph, which allows a single contract address to be used across EVM-supported blockchains, secured $3 million in its latest funding round in April. This round was led by Mechanism Capital and Selini Capital, bringing Holograph’s total funding to $11 million.

News source：https://www.kdj.com/cryptocurrencies-news/articles/holograph-hacked-token-drops-billion-tokens-minted.html

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