French authorities have made arrests in connection with the destructive hacker attack on the Holograph platform, which resulted in the theft of tokens amounting to $14.4 million.
The criminals exploited a vulnerability in the smart contract of the platform operator to generate 1 billion HLG tokens through 9 transactions, 7 of which were sent in batches of 100 million.
Following the attack, the value of the tokens plummeted by nearly 80% within 9 hours, dropping from $0.014 to $0.0029.
An international investigation was promptly initiated after the incident, resulting in the arrest of the suspects in Italy. Assets and electronic devices were seized during the operation, with the materials collected serving as crucial evidence in the ongoing investigation. The suspects are set to be extradited to France for judicial proceedings.
The crypto community, closely following the developments, speculated that the attack may have been orchestrated by insiders. Subsequent investigations revealed that the attack was carried out by a disgruntled former contractor of Holograph, possessing insider knowledge of the protocol. The platform has since implemented enhanced security measures to mitigate the risk of insider threats in the future.
Despite the hacking incident, Holograph remains committed to fortifying its security protocols and delivering a trustworthy platform for tokenization in the Omnichain ecosystem. HOLOGRAPH facilitates seamless token transfers across blockchains while maintaining contract addresses, enabling issuers to efficiently index data across various networks.