A discovered vulnerability in the security system of the HAI token led to significant financial losses and concern among blockchain users.
Circumstances of the Incident
On June 21, a malicious actor utilized a compromised private key to mint 900 million HAI tokens, which were subsequently dumped on decentralized exchanges. According to Hacken, the key was compromised during architectural changes to the blockchain bridge infrastructure, resulting in the exposure of data linked to minting privileges.
Hacken's Response
In response to the incident, Hacken revoked access to the affected minting account and paused bridge transactions across both blockchains. Hacken CEO Dyma Budorin acknowledged responsibility for the incident, emphasizing that the lack of a multisig infrastructure contributed to the security breach.
Consequences for HAI Token
Following the incident, the value of HAI plummeted by nearly 99%, dropping from $0.015 to $0.000056 before partially recovering to $0.00967. Budorin announced plans to convert HAI into a regulated financial instrument with equity rights. It was also stated that tokens purchased after the hack will not be supported in the upcoming tokenomics update.
The HAI exploit raises questions about the security of tokens on Ethereum and BNB blockchains, highlighting the need for improved protective measures. Hacken continues to work on rebuilding community trust.
