- Hacken’s $HAI token plunged 99% after a compromised wallet minted 1B new tokens.
- The exploit resulted from human error during an update, not an external cyberattack.
- Hacken plans a token swap and aims to convert HAI into a regulated security token.
The cryptocurrency industry has faced another major security issue after Hacken’s $HAI token plunged 99% in value. The crash occurred after a compromised private key allowed unauthorized minting of nearly one billion tokens.
The issue was not caused by an external hack but by human error. Hacken acknowledged that the mistake happened during a recent infrastructure update. The error led to a wallet with minting power being exposed, allowing an attacker to exploit it. Hacken confirmed that the deployer wallet remained secure. This allowed the team to act quickly and revoke minting rights from the compromised address.
The exposed wallet held minting permissions on both Ethereum and Binance Smart Chain. The attacker exploited these privileges to mint new tokens and dumped them on decentralized exchanges. This flooded the market, causing the token’s price to fall by nearly 99% in a matter of hours.
Hacken estimated the direct financial loss at around $250,000. However, the market cap dropped from over $12 million to just above $7 million. Hacken CEO Dyma Budorin took full responsibility. He admitted delaying a critical update to the multisig bridge architecture.
“Responsibility is on me,” Budorin posted. “I didn’t implement the multisig bridge infrastructure five years ago. I understood the risk.” He added that the damage to the reputation was even worse than the financial loss. Budorin said his team would work hard to regain community trust.
Infrastructure Remained Isolated and Secure
Despite the crash, Hacken emphasized that its core infrastructure remained safe. The firm stated that its VeChain-based chain helped mitigate the damage. The attacker was unable to bridge tokens back to VeChain or deposit them on centralized exchanges.
The compromised minting occurred only on Ethereum and Binance Smart Chain. Hacken also assured users that legitimate balances are still traceable. The company plans to issue a new token swap for holders impacted by the dump.
The team has taken a snapshot of existing balances. Any HAI tokens bought after the incident will not be eligible for the new swap. Hacken warned users to avoid fake airdrop offers and rely only on official channels.
Hacken stated that its long-term goal is to convert HAI into a regulated security token tied to company equity. This recent setback has accelerated those plans. A post-mortem is in development and will include a comprehensive explanation and outline of next steps.
Security Report Matches Real-World Events
Hacken’s own Q1 Web3 security report warned that human errors are now a leading cause of losses. The report noted that $1.6 billion in crypto was lost in Q1 alone. Many of those losses stemmed from poor access control, not smart contract bugs.
The report’s warning became reality with this recent incident. Hacken emphasized the need to improve procedures and permissions. The company said all future deployments will include stricter internal checks. Product development is still ongoing. Hacken plans to launch new tools soon. These include Dual Defense flash pools and new RWA (real-world asset) token models.
Related: Crypto Trading Hours Limited After Nobitex $100M Hack
Similar Breach at Iran’s Nobitex Exchange
Hacken’s troubles came just days after another security breach hit the crypto world. Nobitex, Iran’s largest exchange, lost over $100 million. The funds were stolen across Bitcoin, Ripple, and EVM-based networks.
The situation worsened when hackers leaked Nobitex’s full source code online. The attack was claimed by Gonjeshke Darande, a pro-Israeli hacker group also known as Predatory Sparrow. Iran’s central bank responded with strict measures. It imposed a trading curfew on all crypto activities. Exchanges must now operate only between 10:00 AM and 8:00 PM.
Security experts are concerned about rising risks from both technical flaws and human mistakes. The recent events at Hacken and Nobitex demonstrate that crypto platforms require constant security upgrades.
As hackers become increasingly sophisticated, even minor mistakes can have significant consequences. Projects must invest in better protocols and staff training. Without strong internal controls, even well-known firms are at risk.
