The HAI token from Hacken suffered from a significant security incident related to unauthorized minting, casting doubt on the safety of DeFi projects.
Incident Overview
The incident occurred on June 21, 2025, when the HAI token faced a drastic value drop due to unauthorized minting caused by a compromised deployment of a bridge. The token's price plummeted nearly 97% overnight. Hacken acknowledged the issue on their official Twitter account, citing a compromised private key. Both Ethereum and BNB Chain platforms were affected, prompting an immediate halt in bridging activities between these chains.
Financial and Market Repercussions
The fallout from this breach was swift; the price of the HAI token dropped to approximately $0.009. Around $253,000 in fraudulent tokens were traded before liquidity constraints halted further damage. Hacken swiftly suspended bridging activities to protect its investors. Financial repercussions exceeded $2.3 million due to contract permission vulnerabilities. However, VeChain remained unaffected operationally, providing a silver lining amid the incident.
Security Implications and Future Outlook
This event lays bare the vulnerabilities in bridge mechanisms, even among firms specializing in blockchain security audits. Such breaches mirror past high-profile cases like those of Ronin and Poly Network, where systemic risks were similarly exploited. It highlights the continuous need for robust security enhancements and key management practices. Hacken, the Web3 security audit firm, confirmed the breach: 'We are investigating a security incident involving the unauthorized minting of HAI tokens on Ethereum and BNB Chain, caused by a compromised private key linked to the bridge deployment.'
The incident with the HAI token reveals significant weaknesses in current DeFi security measures, raising concerns among investors and market participants. This underscores the need for stronger protective mechanisms.
