Hacken’s HAI Token Plummets Following Security Breach
- HAI token plummeted 97% amid security breach.
- Unauthorized minting of 900 million tokens reported.
- Major questions about DeFi security practices emerge.
Hacken, a Web3 security firm, has reported a security incident involving its HAI token, following unauthorized minting on the Ethereum and BNB Chain platforms on June 21, 2025.
Incident Overview
The incident emerged when Hacken’s HAI token suffered a dramatic collapse in value due to an unauthorized minting caused by a compromised bridge deployment. The HAI token’s price nosedived nearly 97% overnight, indicative of a critical security breach. Hacken acknowledged the issue on its official Twitter account, confirming the breach due to a compromised private key. Both Ethereum and BNB Chain platforms were affected, leading to an immediate pause in bridging activities between Ethereum and BSC chains.
Financial and Market Repercussions
The fallout from this breach was swift; the price of the HAI token fell to approximately $0.009. Around $253,000 in fraudulent tokens were traded before market liquidity constraints halted further damage. Hacken’s action to suspend bridging activities between Ethereum-VET and BSC-VET followed swiftly to protect its investors. The financial repercussions exceeded $2.3 million due to contract permission vulnerabilities, indicating a severe incident intensity. However, VeChain remains unaffected operationally, providing a silver lining amid the incident.
Security Implications and Future Outlook
This event lays bare the vulnerabilities in bridge mechanisms, even among firms specializing in blockchain security audits. Such breaches mirror high-profile past cases like those of Ronin and Poly Network, where systemic risks were similarly exploited. It highlights the continuous need for robust security enhancements and key management practices.
Hacken, Web3 Security Audit Firm, confirmed the breach, “We are investigating a security incident involving the unauthorized minting of HAI tokens on Ethereum and BNB Chain, caused by a compromised private key linked to the bridge deployment.”
While Hacken has sought to contain the situation quickly, the future credibility of the HAI token and DeFi protocols leveraging its security measures may face significant scrutiny.
