The crypto community is once again rattled as Hacken, a well-known blockchain cybersecurity firm, became the latest victim of a major security breach. Ironically, the company, famous for promoting Web3 security, suffered an exploit that led to the unauthorized minting of 900 million HAI tokens across the Ethereum and BNB Chain networks.
The aftermath was catastrophic: HAI token price plunged by nearly 99%, shaking investor confidence and raising tough questions about trust, security, and the future of Hacken.
How Did the Hacken Breach Occur?
In an official statement on X (formerly Twitter), Hacken revealed that the breach stemmed from human error—an unsettling admission for a cybersecurity firm. Attackers compromised a private key linked to an account with minting rights, enabling them to rapidly create and dump hundreds of millions of unauthorized HAI tokens on decentralized exchanges.
The incident immediately triggered panic selling, sending HAI price spiraling from $0.015 to a shocking low of $0.000056. At the time of writing, the token has shown slight recovery, currently trading near $0.0001716, according to CoinMarketCap.
What Was Stolen and the Wider Market Impact
Hacken confirmed that approximately $250,000 worth of HAI tokens were directly stolen. However, the damage extended beyond that:
- HAI Market Cap Plummeted: From $12.7 million to $7.2 million
- Total of 900 Million HAI Tokens Minted, nearly doubling the existing supply
- Panic-selling and token devaluation affected multiple trading platforms
This breach not only impacted token holders but also sparked concerns regarding Hacken’s internal security standards.
Bridge Infrastructure at the Center of the Breach
Ironically, the exploit occurred during a planned security upgrade of Hacken’s blockchain bridge infrastructure. During this process, the private key compromise happened, exposing the network to malicious actors.
Hacken’s CEO, Dyma Budorin, publicly accepted responsibility. He admitted to delaying the implementation of multi-signature (multi-sig) security for the bridge for over five years, fully aware of the risks:
“Our bridge was built at a time when both the market and technology landscape were different. Redesigning it requires complex legal and technical transitions.” — Dyma Budorin, CEO of Hacken
Emergency Measures Implemented
In response to the breach, Hacken swiftly:
- Suspended all bridge transactions on Ethereum and BNB Chain
- Revoked compromised account access, with the deployer wallet remaining secure
- Paused all bridge activity until a new, enhanced security infrastructure is deployed
The firm has vowed to rebuild its bridge system with stricter protocols to prevent future exploits.
The Future of HAI Tokens: What Holders Need to Know
Hacken has announced plans to transition HAI from a standard utility token to a regulated security token, backed by Hacken’s equity. This move aims to restore confidence and sustain long-term value for investors.
Key Updates for HAI Holders:
- Tokens purchased on affected networks post-attack will be excluded from the updated tokenomics
- A token swap event will be held, with details to be revealed in Hacken’s upcoming full incident report
The proposed changes are part of Hacken’s efforts to rebuild trust within its community.
A Cautionary Tale for the Entire Crypto Industry
This incident serves as yet another stark reminder that even top-tier Web3 security firms are vulnerable to human errors and outdated processes.
The breach is especially alarming given that Hacken’s own Q1 2025 Security Report listed access control vulnerabilities as the top threat to Web3, with the industry already suffering $1.6 billion in damages from similar incidents this year.
Recent Similar Exploits:
- Meta Pool Hack: $27 million in unauthorized tokens minted; $132,000 stolen
- Growing concerns over DeFi bridge vulnerabilities and private key management
Hacken’s Reputation Takes a Hit
While financial losses from the exploit are significant, the biggest blow has been to Hacken’s reputation, once considered a leading name in Web3 security.
In Budorin’s words:
“The financial loss is significant, but the reputation damage is worse. However, we view this as a temporary setback—we will learn and bounce back.”
The company now faces the uphill task of regaining the community’s trust while addressing security lapses that led to this crisis.
Conclusion: Can Hacken Recover and Lead by Example?
The Hacken breach highlights the pressing need for the crypto industry to adopt stricter security protocols, particularly for infrastructure like blockchain bridges, often exploited by attackers.
Whether Hacken can recover from this severe blow depends on its ability to:
✅ Rebuild its infrastructure with state-of-the-art security
✅ Deliver on promises for regulatory-compliant tokenomics
✅ Restore community trust through transparency and accountability
For now, the crypto world watches closely, questioning whether Hacken’s painful lesson will become the catalyst for higher security standards across the Web3 ecosystem.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are highly volatile. Please conduct your own research (DYOR) before making any investment decisions.
