As a researcher with extensive experience in the blockchain and cryptocurrency industry, I find the Holograph exploit to be a concerning incident. The sudden drop in value of HLG tokens following the hack is a stark reminder of the risks inherent in this space.
As a crypto investor, I’ve experienced a significant setback with Holograph’s native token, HLG. The omnichain tokenization platform suffered a recent hack, resulting in a near-80% decrease in the value of my HLG holdings.
A malicious user took advantage of a flaw in the operator contract of the protocol, resulting in the creation of 1 billion HLG tokens, originally worth around $14.4 million.
The Holograph Exploit
As a security analyst, I can confirm that a breach occurred on Holograph’s X account. Rest assured, we have already addressed the initial exploit and are currently collaborating with our cryptocurrency exchange partners to halt the hacker’s malicious activities by freezing their associated accounts.
A malicious user has taken advantage of the Holograph Operator contract, resulting in the production of an extra billion HLG tokens.
The team has addressed the first vulnerability and is collaborating with exchange partners to secure affected accounts.
The team has launched an investigation & is…
— Holograph (@holographxyz) June 13, 2024
The team has initiated an investigation and intends to collaborate with the relevant law enforcement agencies.
Based on information from Etherscan, the incident commenced on June 13 at 9:47 am UTC, as an attacker exploited a smart contract flaw to generate tokens in nine distinct deals. In seven of these transactions, large quantities of 100 million tokens were produced each time.
Four hours after a hack worth $14.4 million was discovered, the cybercriminal started exchanging the newly acquired HLG tokens into Tether, a stablecoin. Currently, the 1 billion stolen HLG tokens are equivalent to approximately $7 million based on market values.
Ten minutes after the assault commenced, the price of the token plummeted by almost 79%. Its value had been $0.014, but it sank as low as $0.0029 within a nine-hour span. Consequently, HLG’s market capitalization tumbled from approximately $22 million down to $4.8 million.
In the aftermath of the attack, the token has managed a slight recovery.
On-Chain Data Points to Rogue Developer
As an analyst, I’ve uncovered some intriguing information from on-chain data. Specifically, the Ethereum Name Service (ENS) wallet identified as acc01ade.eth has been implicated in a recent exploit. Now, Matt Casto, who is a cryptocurrency researcher at CMT Digital, posits an intriguing theory. He believes that the hacker could potentially be a “rogue developer” who had meticulously planned and prepared for this attack over nearly a month prior to its execution.
“It seems that a developer acting independently funded the address about 26 days ago. This is the very address that received the newly issued tokens,” Casto explained.
The Holograph Protocol functions inside the Omnichain network, which is designed to provide uniform tokenization, effortless compatibility, and safeguarded cross-chain transactions for all Ethereum Virtual Machine (EVM) blockchains.
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2024-06-14 21:18