Multiple arrests made in $14.4M Holograph hack investigation

While the suspects’ names remain undisclosed, the arrests mark a significant step toward justice for the victims of the Holograph hack.

In a major breakthrough, several arrests have been made in connection with the June 13 Holograph hack.

According to Holograph, this development comes after an intensive two-month investigation led by France’s Office for the Prevention of Cybercrime (OFAC) in collaboration with the Brigade de Répression du Banditisme (BRI), Europol, the Italian Directorate of Anti-Mafia Investigations, and the Royal Cayman Islands Police Service (RCIPS).

Multiple arrests made

The arrests were executed in Italy, with substantial assistance from French authorities. As a result, significant assets and electronics have been frozen and seized. The suspects, whose names have not been disclosed due to the ongoing nature of the investigation, are expected to be extradited to France to face charges soon.

The hack involved a sophisticated attack on the Holograph protocol, a blockchain tokenization platform operating within the Omnichain ecosystem. 

On June 13, a malicious actor exploited the protocol’s operator contract to mint 1 billion native Holograph (HLG) tokens valued at $14.4 million using a proxy wallet. This incident caused a dramatic plunge in the value of HLG tokens, which dropped nearly 80% within nine hours of the exploit, from $0.014 to a low of $0.0029.

Following the breach, Holograph initiated an internal investigation with the help of Halborn, a blockchain investigation firm. The company released a detailed post-mortem report on July 2, which identified the involvement of a “disgruntled former contractor.” 

Holograph’s platform is designed to enable tokens to move seamlessly between blockchains while maintaining the same contract address. This functionality allows asset issuers to index cross-chain data efficiently. 

Hack aftermath

Despite the hack, Holograph has continued to strengthen its security measures and maintain its commitment to providing a robust and secure tokenization platform within the Omnichain ecosystem.

Related: Top 100 DeFi Hacks: Offchain attack vectors account for 57% of losses

As the investigation progresses, more details are expected to emerge, shedding light on the full extent of the hack and the measures being taken to prevent similar incidents. 

On Aug. 8, the Indian cryptocurrency exchange WazirX plans to restore the balances of all platform accounts following the halt of withdrawals caused by a $235-million hack in July 2024. 

The exchange attributed the breach to discrepancies between the data displayed on Liminal’s digital custody platform and the valid transaction details on WazirX.

As a result of the breach, the anonymous attacker reportedly stole at least $100 million in Shiba Inu (SHIB) and $52 million in Ether (ETH). The loss accounted for 45% of WazirX’s reserves.

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