H Token Plunges 85% Following $30M Private Key Security Breach
A private key security breach at Humanity Protocol has resulted in the drainage of approximately $30 million worth of H tokens, triggering an 85% price collapse during an active attack.
Humanity Protocol, which has been referred to as the "Chinese Worldcoin," suffered a security breach exceeding $30 million due to compromised private keys, causing H token values to crash dramatically on Tuesday.
"We've detected a security incident involving the compromise of private keys belonging to a member of the Humanity Foundation," stated Terence Kwok, who serves as founder and CEO of Humanity Protocol, in a Tuesday announcement.
According to Kwok, users should refrain from engaging with the bridge or any associated liquidity pools pending confirmation that security has been restored. He mentioned the team's collaboration with security professionals but offered no additional specifics at that moment.
The Humanity platform operates as a zkEVM blockchain-powered decentralized identity solution centered on Proof of Humanity verification and incorporates privacy-focused palm biometric technology.
The H token's market value experienced a dramatic decline over the preceding 12 hours, dropping 85% from approximately $0.70 down to $0.08 as of this writing, based on CoinGecko data.
Blockchain investigator known as "Specter" indicated that wallet addresses connected to or having transactions with Humanity Protocol appear to be experiencing compromise in a continuing assault that has siphoned off up to $30 million worth of the project's H token.
Analytics platform Arkham Intelligence additionally confirmed that the attacker had taken more than $30 million and was converting H tokens via Kyber Network and PancakeSwap, alongside other decentralized exchanges.
Rising trend of private key compromise incidents
This year has witnessed multiple prominent private key security breaches, with one of the most significant being the Drift Protocol incident in April. Threat actors connected to North Korea's Lazarus Group obtained control of security council administrative keys, leading to losses totaling $280 million.
Additional incidents include compromises affecting Step Finance, Resolv, Volo Vault, Echo Bridge, Bankr, Polymarket, StablR, Stake DAO, Gravity Bridge, and Aelphium Bridge.
According to CertiK's findings, wallet and private key breaches ranked as the second-most expensive attack methodology in May, accounting for $13.7 million in stolen assets.