Humanity Protocol fell victim to a security breach, losing $32 million as its native H token plunged nearly 90% within hours. On-chain detectives revealed that attackers accessed private keys tied to the project and began aggressively selling H, sending the price from $0.68 to a low of $0.079. It later recovered to around $0.12, but still sits 85% lower over the past day.
Attacker Mints 200M Tokens, Liquidity Dries Up
Lookonchain data shows the exploiter minted 100 million H tokens on BNB Chain, followed by another 100 million, valued at roughly $11.4 million. These freshly minted tokens were quickly swapped for ETH and BNB and sold, netting 18,510 ETH (~$30.83M) and 1,548 BNB (~$924,000). At press time, the attacker still held about 111 million H tokens worth ~$14 million. However, on-chain liquidity has become severely depleted, limiting further large sales.
Founder Confirms Key Compromise, Engages Security Teams
Humanity Protocol founder Terence Kwok acknowledged the incident, attributing it to compromised private keys belonging to a Humanity Foundation member. The team detected unauthorized access and immediately notified security specialists and exchange partners. Kwok urged users to avoid interacting with the protocol's bridge or liquidity pools until further notice. An investigation is underway.
ZachXBT Raises Doubts: 'Possibly Staged'
Renowned blockchain investigator ZachXBT publicly questioned Humanity Protocol's explanation on X, calling the event “possibly staged” and saying he wasn't convinced. He pointed to the high concentration of H token supply, making it unclear whether this was a genuine theft or a market maker exiting positions. Notably, all token sales occurred via decentralized exchanges rather than centralized venues.
Humanity Protocol operates a biometric identity network using palm-scan verification paired with zero-knowledge cryptography. The project has raised substantial funding over the past two years, reaching a valuation above $1 billion. This breach represents its most serious challenge to date, and market participants are watching the attacker's remaining holdings and the team's efforts to restore confidence.