What to know:
- Humanity Protocol lost $32 million as the H token collapsed 90%.
- Attacker minted 200 million H tokens and drained liquidity.
- ZachXBT questioned breach claims while team investigated compromised keys.
Humanity Protocol suffered a $32 million security breach that sent its H token into a near-90% collapse within hours. According to on-chain investigators, attackers gained access to private keys linked to the project and immediately began selling large amounts of H, triggering one of the token’s steepest declines since launch.
The incident pushed H from around $0.68 to as low as $0.079 before a modest recovery to approximately $0.12. Even so, the token remained down roughly 85% over the past 24 hours as investors reacted to the scale of the exploit.
According to reports surrounding the incident, the sudden selloff erased a significant portion of the token’s market value and fueled concerns about the security of the project. Meanwhile, traders closely monitored blockchain activity as investigators tracked the movement of stolen funds.
Attacker mints tokens as Humanity confirms security breach
According to blockchain analytics reports, the attacker converted large amounts of H into Ethereum, creating intense selling pressure across decentralized exchanges. Consequently, the token’s decline accelerated as more supply entered the market.
Data shared by Lookonchain revealed that the attacker also minted 100 million H tokens on BNB Chain. The newly created supply carried an estimated value of $11.4 million and increased concerns about further downside risk.
Moreover, investigators later identified another minting event involving an additional 100 million H tokens. According to Lookonchain, the attacker had already obtained 18,510 ETH worth approximately $30.83 million and 1,548 BNB valued at about $924,000 through token sales.
Blockchain data showed the exploiter still controlled approximately 111 million H tokens worth around $14 million. However, available on-chain liquidity had become severely depleted, limiting the ability to execute additional large sales.
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Humanity Protocol later acknowledged the security incident and linked it to compromised private keys belonging to a member of the Humanity Foundation. According to founder Terence Kwok, the team detected unauthorized access and immediately engaged security specialists and exchange partners. Additionally, he advised users not to interact with the protocol’s bridge or liquidity pools until further notice.
Kwok stated that the team was actively investigating the breach and working to secure affected systems. Nevertheless, questions continued to circulate across the crypto community as more details emerged.
ZachXBT raises doubts over breach narrative
Crypto investigator ZachXBT questioned Humanity Protocol’s explanation of the incident and suggested the circumstances deserved closer scrutiny. According to comments shared on X, he believes the event appears “possibly staged” and said he was not convinced by the team’s account.
He noted that the concentration of H token supply created uncertainty about whether the activity represented a genuine theft or a market maker exiting positions. Furthermore, he pointed out that the token sales took place through decentralized exchanges rather than centralized trading venues.
Humanity Protocol operates a biometric identity network that combines palm-scan verification with zero-knowledge cryptography. The project has attracted substantial investor support over the past two years and achieved a valuation exceeding $1 billion through multiple funding rounds.
In conclusion, the breach has created one of the most serious challenges Humanity Protocol has faced since its launch. Meanwhile, market participants remain focused on the attacker’s remaining holdings and the project’s efforts to restore confidence.
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