Breakthrough in Holograph Hack Case As Multiple Suspects Arrested in the $14.4 Million Investigation

Multiple arrests were made on August 9 in connection with the $14.4 million Holograph hack. Thanks to the diligent work of international law enforcement agencies, which is, indeed, a longed respite to the victims of the hack.

Holograph Hack Arrests

After an incredibly intensive two-month pursuit by France's Office for the Prevention of Cybercrime (OFAC), BRI, @Europol, the Italian Directorate of Anti-Mafia Investigations, & @Policing_Cayman (RCIPS), we’re grateful to share that multiple arrests have… pic.twitter.com/4ZF076tLkJ

— Holograph (@holographxyz) August 14, 2024

On a seemingly ordinary day, June 13, the Holograph protocol was exploited by a malicious actor. This individual or group was able to mint 1 billion native Holograph (HLG) tokens, which were valued at a staggering $14.4 million at the time. This sudden influx of tokens caused a sharp drop in the value of HLG tokens, which fell nearly 80% within just nine hours of the exploit. The price per token plummeted from $0.014 to a low of $0.0029.

The investigation has come far but not without help

The investigation into this incident was a collaborative effort involving several international agencies. France’s Office for the Prevention of Cybercrime (OFAC) led the investigation, with assistance from the Brigade de Répression du Banditisme (BRI), Europol, the Italian Directorate of Anti-Mafia Investigations, and the Royal Cayman Islands Police Service (RCIPS). The arrests were made in Italy, with substantial assistance from French authorities. As part of the operation, significant assets and electronics were frozen and seized.

While the suspects’ names have not been released due to the ongoing nature of the investigation, they are expected to be extradited to France to face charges. Interestingly, evidence from GitHub suggests that the attackers were contributors to the protocol, having made 113 contributions to Holograph last year.

Holograph seems resolved to forge ahead 

Even though Holograph faced a big problem, the company didn’t give up. Instead, they kept working hard to make their security even stronger. They’re still dedicated to creating a safe and reliable way for people to use tokens within the Omnichain ecosystem. On July 2, Holograph shared a detailed report about what went wrong. The report revealed that a former contractor, who was “disgruntled” with the company, played a role in the problem, the report says.

As more details surface with this arrest, more truths about the hack will likely follow.
“We have taken immediate and decisive action to address the vulnerabilities and have put in place stringent measures to safeguard our protocol and community moving forward,” a spokesperson for Holograph stated.