The Omnichain Tokenization platform saw a significant loss in the value of its original cryptocurrency, HLG, as its value fell by nearly 80% following a serious security exploit.
A hacker exploited a loophole in the protocol operator's contract, enabling him to mint 1 billion HLG tokens with an estimated value of approximately $14.4 million initially.
Holograph, which runs the platform, confirmed the incident via its X account, noting that it quickly patched the vulnerability and was working closely with cryptocurrency exchanges to freeze the attacker's accounts.
The company also explained that it has begun a comprehensive investigation and is in the process of cooperating with the relevant authorities.
According to Etherscan data, the hack began on June 13 at 9:47 a.m. GMT, with the attacker using the vulnerability in smart contracts to mint digital tokens across nine separate transactions.
Seven of these transactions were in totals of 100 million coins each.
After just four hours of exploitation, the attacker began converting the newly minted digital tokens into the stablecoin Tether.
Considering current market prices, the value of the seized digital tokens is just over $7 million, after the initial drop in the value of the coin.
The price of HLG fell rapidly ten minutes after the attack began, falling from $0.014 to $0.0029 within nine hours, representing a sharp decline of 79.4%.
The digital currency's market value also declined from about $22 million to $4.8 million during this period.
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