CDS Crypto News Holograph Protocol Plunged into Chaos by Vengeful Contractor
Crypto News

Holograph Protocol Plunged into Chaos by Vengeful Contractor

Holograph Protocol Plunged Into Chaos By Vengeful Contractor

Holograph Protocol: Disgruntled Contractor’s Sabotage Shakes Blockchain Protocol

Holograph Protocol– An internal investigation has uncovered a shocking breach at the heart of the blockchain tokenization platform Holograph. A former disgruntled contractor has been identified as the mastermind behind a devastating hack.

On June 13, exploiting vulnerabilities in the Holograph protocol, the hacker managed to mint a staggering 1 billion native Holograph (HLG) tokens, valued at a jaw-dropping $14.4 million. The repercussions were swift and brutal: the value of HGL tokens plummeted by nearly 80% in just nine hours, nosediving from $0.014 to a dismal low of $0.0029. Although there was a brief attempt at recovery, with HGL briefly touching $0.0049, it eventually stabilized at $0.002887 at the time of this report, according to CoinGecko data.

Holograph, in collaboration with blockchain investigation firm Halborn, launched an immediate post-mortem investigation into the incident, uncovering damning evidence of the disgruntled contractor’s involvement. The individual exploited their previous insider access to the Holograph Protocol v1 contracts, using it as a strategic backdoor to execute the heist. The hacker cleverly utilized a proxy wallet to mint the illicit HLG tokens, which were promptly dumped on the open market, triggering the catastrophic price crash.

The heist, meticulously planned over months, underscored serious vulnerabilities in Holograph’s security framework. In response, Holograph has initiated legal action, involving law enforcement agencies in pursuing justice. Despite the breach, Holograph swiftly resumed operations on its v2 protocol, advising crypto exchanges to resume HLG deposits and withdrawals cautiously.

To address concerns over the inflated supply, Holograph announced plans to implement a burn strategy, reducing the maximum supply of HLG tokens to 10 billion. However, details on recovering the stolen funds and the progress of law enforcement proceedings remain undisclosed.

The incident has sent shockwaves through the crypto community, highlighting the urgent need for robust security measures against insider threats. As part of its recovery plan, Holograph has bolstered its operational controls to prevent future breaches and reassure stakeholders of its commitment to security.

Meanwhile, on June 3, the Bittensor protocol also fell victim to a similar attack, halting network activities after millions of dollars’ worth of digital assets were drained from its wallets, further rattling investor confidence in decentralized systems.

For the latest in crypto updates, keep tabs on Crypto Data Space.

Bitcoin News Today: Bitcoin Slips to $60K, Altcoins Largely Down, FLOKI Takes Off

Leave a comment

Leave a Reply

Related Articles

July 13 Crypto News – ZAP Reaches $100 Million, ETFs on a Roll, and SEC Wraps Up Another Probe

The SEC has dropped its probe into Hiro’s Stacks, allows some firms...

XRP Stands Alone in Green While Bitcoin Bulls Take a Breather

Traders attribute the price lull to market participants staying cautious due to...

Crypto News- Top Altcoins Snapped Up by Big Investors in the Second Week of July 2024

Crypto whales have processed approximately $3.32 billion worth of Litecoin (LTC) transactions...

The Impact of Equities Sell-Off on Bitcoin and Ether Prices

The Impact of Equities Sell-Off on Bitcoin and Ether Prices