Hacken faced a severe setback when unauthorized minting of its native token led to a 99% price drop, attributed to a compromised private key, causing significant market turbulence.
This incident underscores ongoing security vulnerabilities in blockchain, affecting Hacken’s market trust and value while freezing key bridges to mitigate further risk.
900 Million Hacken Tokens Minted Unauthorizedly
Hacken, a Ukrainian cybersecurity firm, faced a major exploit when 900 million Hacken tokens were minted unauthorizedly. This incident exploited a private key linked to bridge deployment across Ethereum and BNB Chain networks.
Dyma Budorin, Co-founder & CEO of Hacken, highlighted, “Responsibility is on me. I didn’t implement multisig bridge [infrastructure] 5 years ago. I understood the risk, but delayed bridge restructuring due to not unimportant reasons.”
CEO Dyma Budorin acknowledged responsibility, accepting blame for not implementing multisig bridge infrastructure sooner. Hacken communicated investigation updates through its verified X account, maintaining transparency throughout the process.
Hacken Market Cap Drops $5.5 Million
The Hacken token‘s market capitalization took a significant hit, plummeting from $12.7 million to $7.2 million. Market liquidity dried up as a result, impacting broader cross-chain activities involving Ethereum and BNB Chain.
This exploit raises concerns about operational risks within blockchain security frameworks. Past incidents, like the Ankr and Poly Network exploits, underline the persistent vulnerabilities stemming from compromised private keys and security lapses.
Historical Breaches Highlight Governance Token Risks
Past security breaches in the crypto space, such as those affecting Ankr, show parallel vulnerabilities. These incidents often involve governance tokens without multisig security, leading to dramatic value collapses.
Experts emphasize the importance of comprehensive security frameworks, noting that even audit firms can fall prey to attacks. Future directives might include mandatory multisig systems to safeguard against similar breaches.
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