Wallets linked to Humanity Protocol drained for over $32 million, token plunges 89%: onchain analyst

Wallets that interacted with Humanity Protocol are being targeted in an ongoing exploit, onchain analyst Specter flagged on Monday.

On social media platform X, Specter wrote that 17 wallets holding Humanity's native H token were exploited earlier in the day. Losses were initially estimated at around $5 million.

In a follow-up message on his Telegram channel, the onchain analyst updated that losses have since widened to $32 million. Out of the stolen amount, $23.7 million has been swapped for Ethereum, while around $7.9 million remains in H tokens.

"The root cause is still unknown, but the pattern suggests the affected wallets may share a common exposure related to Humanity Protocol," Specter wrote.

Following Specter's reporting, Terence Kwok, founder of Humanity, acknowledged the security breach on X and explained that it involved the compromise of private keys belonging to a member of the Humanity Foundation.

"We're already working with security experts and our exchange partners on resolution," Kwok wrote. "We're deeply sorry — protecting this community is our responsibility, and we'll keep you updated every step of the way."

Later on Monday night, Specter said the hacker minted 100 million H tokens, which were being dumped for BNB tokens.

Not a theft?

Meanwhile, prominent onchain sleuth ZachXBT said he does not trust the team's explanation and raised suspicions that the incident may have been staged.

"Unsure whether it's a theft or MM (market maker)," ZachXBT wrote. "I am not buying the team's story; it’s a convenient way for the active MM to have exited."

Specter also previously wrote on the social media platform that some of Humanity's executives "have questionable pasts" involving mismanagement, lawsuits, or financial wrongdoing. 

The news of the exploit has caused the H token to plummet in value — the cryptocurrency is down 89% in the past 24 hours, according to CoinGecko data.

Humanity Protocol is a decentralized identity verification project using biometrics and zero-knowledge proofs to allow users to prove their humanness without revealing personal data.

Story updated with ZachXBT's comments.