Humanity Protocol Token Plummets 88% Amid $30 Million Wallet Breach
The native token of Humanity Protocol, known as H token, experienced a dramatic collapse of nearly 88% on June 9, plummeting from approximately $0.78 to around $0.099.
This sharp decline followed reports of a significant security incident affecting wallets linked to the protocol.
On-chain investigator Specter initially flagged the issue, revealing that over 17 wallets holding H tokens had been drained. Subsequent reports indicated that attackers had stolen private keys associated with the project, siphoning more than $30 million from these wallets.
Humanity Protocol later confirmed the security breach. In a statement on X, the team behind the blockchain identity network disclosed that private keys belonging to a member of the Humanity Foundation had been compromised. They advised users to refrain from interacting with the bridge or any liquidity pools until further notice.
“We are actively working with leading security experts and our exchange partners to assess the scope of the incident and secure all affected systems,” the protocol stated. “We’re deeply sorry that this has happened. Protecting this community is our responsibility, and we don’t take that lightly.”
However, not all parties accepted Humanity Protocol’s explanation. On-chain investigator ZachXBT challenged the project’s narrative on X, accusing the team of aggressively promoting the token for weeks while offering little in terms of underlying value. ZachXBT also called for the project to disclose any active market maker agreements involving a Hong Kong-based entity.
In a separate post, ZachXBT suggested the security breach appeared “possibly staged,” adding that it could be a “convenient way for the active MM to have exited.”
Humanity Protocol is a blockchain-based identity project designed to allow individuals to verify their humanity. It utilizes biometric data and privacy technology, enabling users to prove their identity without sharing personal information.
Launched on mainnet last year, the project quickly gained attention as a competitor to Sam Altman’s Worldcoin, which has since been rebranded to World Network.
According to blockchain analytics platform Lookonchain, the perpetrator continued to mint H tokens after the exploit. Initially, 100 million H tokens were created on the BNB Smart Chain, followed by another 100 million. The hacker has reportedly sold a portion of these tokens, acquiring 18,510 ETH, valued at approximately $30.83 million, and 1,548 BNB, worth around $924,000.
Despite these sales, the attacker still holds an estimated 111.36 million H tokens, with a current market value of nearly $14 million. However, Lookonchain noted that the on-chain liquidity for the token is now nearly depleted.
Leave a Reply