Hacken Token Plunges 99% After $250,000 Hack

Hacken Token (HAI) experienced a dramatic 99% plunge in value after a hacker exploited a private key leak to mint and subsequently dump $250,000 worth of tokens. The incident occurred on Saturday, causing the token's value to drop from $0.015 to $0.000056. The hacker targeted an account with minting privileges on both the Ethereum and BNB Chain, leading to unauthorized minting and a significant sell-off on decentralized exchanges.

Hacken, the cybersecurity firm behind the token, acknowledged the breach and took immediate action to revoke the compromised minter account from the token contract. Despite these efforts, the hacker managed to escape with at least $250,000 worth of tokens. The firm assured users that the core infrastructure remained secure and that there was no evidence of further compromises beyond the private keys.

The private key leak was attributed to architectural changes made to Hacken's blockchain bridge, which were intended to mitigate such risks. The firm explained that redesigning a deployed bridge involves complex legal and technical processes, including migrating contracts. As a precautionary measure, Hacken has paused bridge transactions on Ethereum and BNB Chain until further notice. The firm also warned users about potential scams, emphasizing that there were no planned airdrops.

In response to the incident, Hacken CEO Dyma Budorin announced that all tokens bought on the affected networks after the hack would not be supported in the new tokenomics. The firm's long-term goal is to transform HAI into a regulated financial tool that combines token utility with equity rights, merging HAI and Hacken's equity shareholders. Legitimate user balances remain trackable, and HAI tokens will have the option to swap later, with details to be announced soon.

The incident highlights the ongoing challenges in the cryptocurrency space, where security breaches and exploits continue to pose significant risks. Hacken's response to the incident demonstrates the firm's commitment to addressing the issue and protecting its users, while also emphasizing the need for enhanced security measures in the industry. The firm's proactive steps, including revoking the compromised account and pausing bridge transactions, show a dedication to mitigating further damage and restoring user confidence. Additionally, the decision to transform HAI into a regulated financial tool indicates a strategic shift towards greater security and compliance, which could set a precedent for other tokens in the ecosystem.