- Humanity Protocol, a decentralized identity project, lost over $30 million in a private key compromise on Tuesday.
- The project’s native H token price collapsed by 85% following the exploit, dropping from around $0.70 to $0.08.
- Onchain investigators confirmed the attacker drained funds by swapping H tokens through decentralized exchanges like Kyber Network and PancakeSwap.
- Founder Terence Kwok advised users to avoid interacting with the protocol’s bridge and liquidity pools until security is restored.
The Humanity Protocol, a project often compared to Worldcoin, was exploited for more than $30 million on Tuesday due to a private key compromise. This security breach caused the value of its H token to plummet dramatically across cryptocurrency markets.
“We’ve detected a security incident involving the compromise of private keys belonging to a member of the Humanity Foundation,” said founder and CEO Terence Kwok. He warned users not to interact with the bridge or any liquidity pools until safety could be assured.
Consequently, the H token’s price crashed 85% over 12 hours, falling from around $0.70 to $0.08, according to CoinGecko. Onchain investigator “Specter” said the ongoing attack had drained roughly $30 million.
Arkham Intelligence also reported the exploiter swapped the stolen H tokens through various decentralized exchanges. This incident highlights a growing trend of costly private key compromises within the crypto sector.
High-profile breaches this year include the $280 million Drift Protocol exploit in April. Others affected include Step Finance, Polymarket, and Stake DAO.
Meanwhile, wallet or private key compromises were the second-most costly attack vector in May. CertiK reported that $13.7 million was stolen through this method last month.
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