Blockchain tokenization platform Holograph’s personal token is down 79.4% after an attacker hacked the protocol operator’s contract and mined 1 billion HLG tokens value $14.4 million.
Holograph X’s account confirmed the hack on June 14. It was discovered to have since patched the unique exploit and is working with cryptocurrency trade companions to freeze the attacker’s accounts.
Holograph added that it has launched its personal investigation and is contacting legislation enforcement.
How the HLG exploit works
1 billion HLG tokens had been minted by a hacker over 9 transactions utilizing a sensible contract vulnerability — based on Etherscan, the primary minting occurred on June 13 at 9:47 UTC.
Seven of them had been shipped in batches of 100 million.
It solely took 10 minutes for the value of HLG to begin falling. In 9 hours, the token fell 79.4% from $0.014 to a neighborhood low of $0.0029, whereas HLG’s market capitalization fell from almost $22 million to $4.8 million throughout that point, based on CoinGecko. Since then, HLG has recovered barely to $0.008.
The 1 billion HLG tokens at the moment are value $7.4 million at present costs, however the hacker had already began changing the minted HLG into Tether (USDT) stablecoin about 4 hours after the primary exploit.
On the topic: CoinGecko Confirms Electronic mail ISP Breach Sends Over 23,000 Phishing Emails
Matt Casta, a cryptocurrency researcher at enterprise capital agency CMT Digital, believes the hacker was a “rogue developer” who funded the Holograph operator’s contract handle 26 days in the past.
Holograph didn’t instantly reply to Cointelegraph about whether or not it knew the id of the hacker.
Holograph relies on the Omnichain ecosystem and permits tokens to maneuver between blockchains whereas sustaining the identical contract handle, permitting asset issuers to index information between chains.
It has acquired enterprise capital funding from firms comparable to Animoca Manufacturers and Mechanism Capital.
Practically $19 billion in cryptocurrency has been stolen because the first business hack in June 2011, based on a latest report by Crystal Intelligence.
Journal: Lazarus Group’s Favourite Exploit Revealed — Crypto Hacking Evaluation