Hacken's $HAI Token Plummets 97% After $253,000 Security Breach

Hacken, a leading Web3 security auditing platform, recently experienced a significant security breach, resulting in the compromise of its native cryptocurrency token, $HAI, on both the Ethereum and Binance Smart Chain (BSC) networks. The breach was first reported by Cyvers Alerts, a Web3 security group, which highlighted the severity of the exploit. The incident led to a dramatic 90% drop in the value of $HAI, although it later recovered slightly, now down 39% since the previous day.

The security breach was initiated by the compromise of the private key associated with the bridge deployment. This allowed the attacker to take control of the deployment wallet, granting them the ability to mint exclusive tokens at will. Consequently, a substantial number of $HAI tokens were illegitimately issued, with approximately 900 million $HAI tokens minted. The financial impact of the breach was mitigated by the liquidity constraints on decentralized exchanges (DEXs) hosting the $HAI token, limiting the attacker's ability to swap the tokens. The attacker managed to swap nearly $253,000 worth of $HAI tokens within the $BNB ecosystem before the breach was contained. Additionally, suspicious mint transfers involving $HAI were observed on both the Ethereum and Binance Smart Chain networks.

In response to the security breach, Hacken took immediate action by halting cross-chain bridge contracts, specifically $BSC-$VET and $ETH-$VET, as a precautionary measure to prevent further unauthorized activities. The platform has assured the community that it will provide additional details as the investigation progresses. This incident underscores the vulnerabilities within the cryptocurrency ecosystem and the critical need for enhanced security measures to protect against such exploits.

The breach has had a profound impact on the value of $HAI, with the token experiencing a dramatic 97% price collapse following the incident. This sharp decline highlights the risks associated with decentralized finance (DeFi) and the potential for significant financial losses due to security exploits. The incident serves as a reminder of the importance of robust security protocols in the cryptocurrency market and the need for continuous improvement in security measures to safeguard against future breaches.