Holograph Protocol Vulnerable to Exploits as Hacker Creates 1 Billion Native HLG Tokens

Holograph Protocol Faces Attack, Hacker Creates 1 Billion Native HLG Token
A malicious breach on Thursday targeted Holograph, an omnichain tokenization protocol, resulting in the creation of 1 billion native HLG tokens. The hack caused the cryptocurrency to plummet by almost 80% in value.
In a bold move, hackers mined 1 billion HLG tokens and made off with tokens valued at $14.4 million. The platform quickly responded by announcing on social media that they had fixed the initial breach and were actively working to freeze the accounts of those responsible.
“The team has successfully patched the initial breach and is collaborating with our exchange partners to secure the malicious accounts. An investigation is underway, and we are cooperating with law enforcement agencies.”
According to data from Etherscan, the hackers initiated the breach on June 13 at 9:47 am UTC through a series of nine transactions. The on-chain data pointed to the involvement of the ENS wallet acc01ade.eth in the attack.
Furthermore, findings on Github indicated that the attackers may have been contributors to the protocol. In the past year, they had made 113 contributions to Holograph.
Holograph’s HLG Token Plunges by Almost 80%
Following the breach, the price of Holograph Protocol’s native token, HLG, took a significant hit. CoinGecko data showed that the token dropped from $0.014 to a low of $0.0029, marking a 79.4% decrease on that day.
Since the breach, the token has managed to recover slightly and is currently trading at $0.0063.
Additionally, Etherscan data revealed that the hackers began converting the stolen HLG tokens into the Tether stablecoin (USDT) four hours after the breach occurred.
This incident comes after the Protocol secured $11 million in a strategic funding round from top venture capitalists a few months ago. The funding was led by Mechanism Capital, headed by Andrew Kang, and Selini Capital, led by Jordi Alexander.
Holograph had previously stated that they intended to use the funds to enhance their omnichain gaming platform, which allows game developers to tokenize assets across multiple chains.
Having launched its mainnet in 2023, the protocol has facilitated the creation of over 10 million omnichain tokens by 1.5 million unique wallets.
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