Holograph Tokenization Platform Suffers $14.4 Million Loss in Major Hack

Holograph Tokenization Platform Suffers $14.4 Million Loss in Major Hack

On June 14, the blockchain tokenization platform Holograph experienced a significant security breach. An unidentified hacker exploited a vulnerability in one of its smart contracts, leading to the issuance of 1 billion HLG tokens over nine separate transactions, with a total value of $14.4 million. This event was documented on Etherscan, revealing that seven of the nine transactions involved transfers of 100 million HLG tokens each.

In the immediate aftermath of these transactions, the value of Holograph’s native token, HLG, plummeted dramatically. Within hours, the price dropped nearly 80%, reaching a low of $0.0029. According to BeInCrypto, HLG was trading at $0.00708 at the time of reporting, resulting in a market capitalization of $10.7 million. Despite the market downturn, the hacker was able to convert the stolen tokens into Tether (USDT) within four hours, securing a significant portion of their value.

The Holograph team quickly confirmed the breach, identifying and addressing the vulnerability. In response, the developers have been working closely with cryptocurrency exchanges to freeze the hacker’s accounts and recover the stolen funds. A statement from the team reads: “The team has patched the initial exploit and is collaborating with exchange partners to lock the malicious accounts. An investigation has been launched, and law enforcement is being contacted.”

Holograph specializes in blockchain-based tokenization, providing tools and technologies for creating, managing, and transferring real-world asset (RWA) tokens across multiple networks. The HLG token plays a crucial role within the Holograph ecosystem, used for paying commissions and participating in project governance.

This incident follows closely on the heels of another recent security breach in the decentralized finance (DeFi) space. UwU Lend, a decentralized protocol, was hacked twice within three days, resulting in losses of $20 million and $3.7 million from the first and second exploits, respectively.