The attacker took advantage of a vulnerability in the smart contract of the Holograph protocol, issuing 1 billion HLG tokens worth $14.4 million. As a result, the rate of the platform’s own token fell by 79.4%.

According to Etherscan, the hacker issued 1 billion HLG in nine transactions. The first release of tokens took place on June 13. Seven transactions were carried out in “batches” of 100 million tokens. The attacker has already started converting the issued HLG into USDT stablecoins. Just 10 minutes after the incident, the HLG rate began to fall. Nine hours later, the token had fallen 79.4%, from $0.014 to $0.0029, while HLG’s market capitalization had fallen from nearly $22 million to $4.8 million. HLG has now recovered slightly to $0.008.

The Holograph team confirmed the hack on social network X and released a patch to fix the exploit. Holograph called on cryptocurrency exchanges to cooperate, asking them to freeze the accounts of the attackers. Holograph specialists began their own investigation of the incident and also contacted law enforcement agencies. It is not yet known whether the identity of the hacker has been identified. The project promised to compensate users for their losses.

Let us remind you that the British crypto exchange Lykke recently suffered from a hacker attack, from which 158 BTC and 2,161 ETH worth more than $22 million were stolen.