Web3 security firm Hacken suffered a critical security breach involving its HAI token bridges on Ethereum and Binance Smart Chain networks. This breach, caused by human error leading to the compromise of a private key, resulted in unauthorized minting of approximately 900 million HAI tokens. Consequently, the HAI token experienced an immediate and drastic 98% crash in value.
The incident exposed significant vulnerabilities in token bridge security, undermining investor confidence and causing liquidity issues within decentralized finance (DeFi) ecosystems. Hacken responded swiftly by suspending all cross-chain bridge operations to prevent further losses and is actively communicating updates to its community.
This exploit highlights ongoing risks in blockchain infrastructure, emphasizing the critical need for strengthened security protocols to safeguard private keys and bridge deployments. Industry observers anticipate increased regulatory scrutiny and calls for enhanced cybersecurity measures across the DeFi sector to restore market confidence and ensure the safety of cross-chain operations.