Hacken, a cybersecurity firm, recently suffered relevant reputational damage due to a hacker accessing the firm’s private key, leading to massive unauthorized minting.
Dyma Budorin, CEO of Hacken, said that the damage is only caused to the reputation, and it does not cause any harm to the main operation of the business. The leak of the firm’s private key enables the hacker to mint and loot $250 worth of HAI, a native Hacken token, causing its value to plunge by about 99% on Saturday. Precisely, the value of the HAI token drops from $0.015 to $0.000056, and currently it has been trading at $0.00026.
Hacken is one of the most trusted international cybersecurity companies. The main goal of the company is to build a secure Web 3 platform by contributing to safety and security standards. It has a significant role in the crypto landscape as it provides a decentralized buy bounty platform and operates with primary protocols such as KuCoin, Binance, and Gate.io.
Hacken’s reputation and credibility became questionable due to the cause of this single incident. Users are very tense about the security of their digital coins and said that if this prominent venture, Hacken, falls victim to this bad incident, and where they are now with bridge security and key management.
Bridge Exploit
According to Hacken, the private key linked to its bridge deployment was compromised, and the hacker stole a high volume of HAI using this key on both BSC and Ethereum. As a result, the token value dropped from $0.01 to near zero within hours, which evaded millions in the value of the market.
As a precaution against this risk, the company freezes all its cross-chain bridge transactions on the BNB chain, VeChain, and Ethereum until further notice. Also warned users not to trade or bridge HAI/ Ethereum tokens. Further, on Sunday, Dyma Budorin said in an Xpost that all Tokens on the affected networks: Ethereum and BSC, provided after the hack and won’t be accepted in the new tokenomics.
Hacken team members instantly cancelled the compromised token contracts’ minter account and regained its regulation. Anyhow, depending on the present estimates of the firm, Hacker still regulates $25000 worth of HAI tokens.
“ The primary aim of Hacken is to transform HAI token into a security token that implies Firm equity, and also crypto flexibility, and now is the correct time to effectively implement the idea,” according to the firm.
However, the hacking incident highly impacted the recognition of Hacken as a prominent Web3 security company. Similarly, its bridge exploit influenced the company to encounter uncomfortable questions from users regarding its systematic security concerns in the space.
The hacking incident of Hacken highlights how the compromise of a private key gives trouble to the whole token ecosystem, according to a security researcher on X.
To overcome the incident and recover the firm’s reputation, Hacken is going to convert its HAI token into a manageable financial tool that merges the utility of the token with equity rights by combining the Hacken token (HAI ) and its equity shareholders. As a part of this, the company constantly tracks the balances of all legitimate users, and Token will provide a new option to swap later. All the updates are coming soon, and all are in progress, said Hacken.
