Hacken, a prominent Web3 cybersecurity firm, recently experienced a catastrophic $5 million crash in the value of its native token, $HAI. The incident, attributed to a private key leak and subsequent unauthorized minting, highlights the critical vulnerabilities within the digital asset ecosystem, even for security-focused entities. The firm has cited "human error" as the root cause.
Key Takeaways from the Incident
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Significant Financial Loss: The market capitalization of $HAI dropped from around $12.7 million to approximately $7.2 million.
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Unauthorized Minting: The attacker minted roughly 900 million $HAI tokens, significantly inflating the supply.
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Human Error: Hacken explicitly blamed "human error" for the private key leak.
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CEO's Acknowledgment: Dyma Budorin admitted to delaying crucial security infrastructure.
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Swift Response: Hacken was able to revoke control from the compromised minter accounts as the deployer wallet remained secure.
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Future Plans: Hacken is considering a token swap to compensate $HAI holders, potentially involving a merger with Hacken equity shareholders.
Hacken's $HAI Token Plummets After Private Key Compromise
The market capitalization of Hacken's native token, $HAI, plummeted by approximately $5.5 million following an attacker's unauthorized minting of a massive quantity of tokens. This incident, which occurred on Friday, June 21, 2025, saw the token's value crash by as much as 97% at its lowest point.
The Cause: Human Error and a Leaked Private Key
Hacken confirmed that a private key belonging to an account with a minter role for both Ethereum and BNB networks was compromised. This breach enabled the attacker to mint nearly 900 million $HAI tokens, effectively doubling the token's supply and leading to its catastrophic price drop. Hacken's co-founder and CEO, Dyma Budorin, took personal responsibility, acknowledging a delay in implementing a multisig bridge infrastructure.
Lessons Learned: The Importance of Access Control
This incident underscores a critical point Hacken itself highlighted in its Q1 Web3 security report: access control exploits are a leading threat in the Web3 ecosystem. The report noted that while smart contract vulnerabilities persist, the majority of damages now stem from failures in "people, processes, or permission systems." This event serves as a stark reminder that even cybersecurity firms are susceptible to the very threats they aim to mitigate, emphasizing the continuous need for robust security protocols and human vigilance.
Sources
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Hacken cites 'human error' after private key leak triggers $5 million crash in $HAI value, The Block.
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