Hacken Hacked: The Cybersecurity Giant’s $250K Token Breach Shocks the Crypto World

June 25, 2025 — In a stunning twist that has rattled the blockchain community, Hacken, one of the most respected names in Web3 cybersecurity, became the latest victim of the very type of exploit it was built to prevent. Over the weekend, hackers compromised a private key tied to Hacken’s minting rights, resulting in the unauthorized creation of nearly 900 million HAI tokens across Ethereum and BNB Chain networks. The fallout? A catastrophic 99% collapse in HAI’s token price and a crisis of confidence in one of crypto’s supposed guardians of security.

How the Hacken Breach Unfolded

It’s the kind of irony no cybersecurity company wants to face: being breached in the very space it promises to protect. In a detailed statement on X (formerly Twitter), Hacken attributed the breach to “human error”, a rare admission for a firm that prides itself on safeguarding digital assets. The attacker exploited a compromised private key tied to an account with minting permissions, allowing them to flood the market with illegitimate tokens.

Source: X

The mint-and-dump attack triggered an immediate collapse in HAI’s value. What was once trading at $0.015 plummeted to a shocking low of $0.000056, wiping out nearly all market value in minutes. Although the price has since recovered slightly, hovering around $0.00017 at press time, the damage has been done — both financially and reputationally.

The Financial and Market Impact: Beyond the $250K Loss

While Hacken’s official report pegs direct losses from the token minting attack at around $250,000, the broader impact was far more devastating. The market capitalization for HAI was slashed by more than 40%, plummeting from $12.7 million to $7.2 million virtually overnight.

The attackers’ minting spree, which nearly doubled the total HAI supply, flooded decentralized exchanges (DEXs) and sparked a wave of panic selling. In the space of hours, investor trust — carefully built over years — evaporated.

A Breach Born During a Security Upgrade

What makes this hack particularly troubling is the context. The breach occurred amid ongoing security upgrades to Hacken’s blockchain bridge infrastructure — upgrades designed, ironically, to enhance protection. CEO Dyma Budorin revealed that the exploited private key vulnerability had existed for over five years, the result of delayed implementation of a multi-signature (multi-sig) security system.

Budorin’s frank admission cut to the heart of the matter:

“Our bridge was designed when the market and technology were substantially different. Redesigning a deployed bridge means moving contracts — a complex legal and technical process. We knew the risk, and we own it.”

How Hacken Responded

In the immediate aftermath, Hacken acted to contain the damage:

• Suspension of bridge transactions across Ethereum and BNB Chain

• Revocation of minting rights from compromised accounts

• Public transparency via rapid communication on social media and its blog

Crucially, Hacken confirmed that the deployer wallet itself remained secure, a detail that prevented even deeper losses. But with bridge activity halted and plans for a major infrastructure overhaul now underway, Hacken faces a long road to recovery.

What’s Next for HAI Token Holders?

Perhaps the most pressing question: what happens to HAI holders caught in the crossfire? Hacken has announced that:

• HAI tokens purchased on affected networks after the attack will not be honored in future tokenomics models.

• A token swap program will be introduced to replace compromised tokens with new, regulated securities backed by Hacken’s equity.

The firm’s pivot toward regulated security tokens is intended to restore confidence and ensure that HAI’s value is underpinned by real-world assets and accountability. Full details of this initiative are expected in an upcoming incident report.

The Bigger Picture: A Wake-Up Call for Web3

Hacken’s breach is the latest in a string of high-profile exploits that have rocked the crypto space in 2025. Just weeks ago, Meta Pool suffered a similar minting attack, resulting in $27 million worth of fraudulent tokens. These incidents highlight a troubling trend: even firms built on security foundations are not immune to human error and process failures.

Source: X

The fact that Hacken itself had, in its own Q1 2025 security report, cited access control weaknesses as the single largest threat to Web3 only underscores the bitter irony of this attack. In that same report, Hacken estimated that $1.6 billion in damages had been caused by such vulnerabilities this year alone.

Can Hacken Rebuild Trust?

Perhaps the biggest challenge Hacken now faces is not technical — it is reputational. While financial losses can, in theory, be recouped through careful management and restructuring, the stain on Hacken’s credibility could linger.

Budorin acknowledged this in his public address:

“The cash loss is considerable, but the reputation hit is far worse. Yet, it is not a long-term problem: we will learn and bounce back.”

Whether investors, partners, and clients will share that optimism remains to be seen. For now, Hacken’s every move will be scrutinized by a crypto community hungry for reassurances that lessons have been learned — and mistakes won’t be repeated.

Lessons for the Crypto Industry

If Hacken’s experience teaches anything, it’s that no entity is beyond reproach in the fast-moving world of blockchain. The breach underscores the need for:

• Timely adoption of multi-sig and other advanced security measures

• Ongoing, independent security audits

• Transparency in disclosing and addressing vulnerabilities

As Web3 matures, so too must its security practices. The cost of failure, as Hacken’s ordeal shows, can be both immediate and profound.

Final Thoughts

Hacken’s shocking breach has sent ripples through the cryptocurrency industry, serving as a stark reminder that even the gatekeepers of digital security can fall prey to the weaknesses they’re tasked to guard against. As the company works to rebuild its infrastructure and its standing, the crypto community at large faces an uncomfortable truth: no system is bulletproof, and vigilance must be relentless.

The coming months will be critical, not just for Hacken’s recovery, but for the broader ecosystem’s ability to evolve in the face of increasingly sophisticated threats.