Holograph Tokenization Platform Suffers Security Breach, Loses $14.4M in Hack

NAIROBI (CoinChapter.com)— On June 13, the blockchain tokenization platform Holograph suffered a security breach. A hacker exploited the

Blockchain tokenization platform Holograph (HLG) has fallen victim to a security breach, leading to the minting of 1 billion HLG tokens. The incident, which occurred on June 13, saw the tokens being sold on the open market, causing the token’s value to plummet by nearly 80%.

According to a post-mortem report released by Holograph on July 2, the breach was carried out by a former contractor who had admin access to the Holograph Protocol v1 contracts. Using a proxy wallet, the hacker was able to mint the HLG tokens and sell them on the open market, causing the token’s price to crash.

The report also noted that the attack was planned in advance, with the contractor adding malicious jobs to the HolographOperator V2 contract months before the breach. These jobs were then used to mint the 1 billion HLG tokens on the day of the incident.

The tokens were then quickly bridged across various networks, including Ethereum, Binance Smart Chain, and Polygon. The rapid transfer and sale of the tokens on multiple exchanges also led to the token’s drastic price decline.

Holograph has stated that it will be involving law enforcement in the investigation and has also implemented operational risk controls to prevent future insider attacks. The protocol has assured the community that only the circulating supply will be burned to return it to the original schedule.

Despite the breach, Holograph has resumed operations. The team has re-enabled bridging on the v2 protocol and informed exchanges like Bybit, Gate, KuCoin, Bitget, and Backpack that it is safe to reopen HLG deposits and withdrawals.

In an upcoming update, Holograph will provide further updates on asset recovery and law enforcement proceedings.

In related news, on June 3, the Bittensor protocol experienced a network outage due to a series of wallet drains. At least $8 million worth of digital assets were stolen, forcing the network to halt activity. Bittensor co-founder Ala Shaabana confirmed the containment of the attack and the network’s shift to safe mode.