Token plummets 89%! Humanity Protocol reports being hacked, but on-chain detectives suspect it was staged by the project itself

Humanity Protocol, which focuses on decentralized identity verification, was suddenly hacked for $32 million, causing the native token "H" to plummet nearly 90% in a single day. However, on-chain investigators have challenged this, suggesting that the theft might have been orchestrated by insiders "self-sabotaging."

Amidst the turbulent crypto market, Humanity Protocol, which emphasizes decentralized identity verification, was reportedly hacked, with multiple related wallets collectively stolen, resulting in losses of $32 million. Driven by the negative news, the native token "H" crashed nearly 90% in one day. However, what seemed like a typical hacker attack was contradicted by on-chain detectives, who claimed that the theft might have been "staged" by internal personnel.

On Monday, on-chain data analyst Specter issued an emergency alert, pointing out that several wallets that had interacted with Humanity Protocol were being maliciously drained.

Initially, Specter stated on social platform X that up to 17 wallets holding H tokens had been hacked, with preliminary estimated losses of about $5 million. Unexpectedly, the situation quickly worsened, expanding the total damage to $32 million.

As of the time of writing, approximately $23.7 million of the stolen assets have been exchanged for Ethereum, while about $7.9 million worth of H tokens remain untransferred.

Specter warned, "Although the exact vulnerability source is still under investigation, the highly consistent attack methods suggest that these affected wallets likely exposed the same security flaw somewhere within Humanity Protocol."

As the disaster rapidly spread, Humanity founder Terence Kwok confirmed the theft on X, attributing the breach to a "private key" leak of a Humanity Foundation member. Terence Kwok wrote:

We are working with cybersecurity experts and exchange partners to find a solution. We sincerely apologize—protecting the community is our responsibility, and we will keep everyone updated on the latest developments.

However, the official explanation did little to quell market concerns. ZachXBT, known for exposing on-chain scams, publicly expressed skepticism about Humanity’s account. He wrote on social media:

Is this a hacker theft, or are internal market makers behind this? It’s still too early to tell. I don’t trust the team’s explanation. It seems more like an excuse to facilitate market makers’ arbitrage exit.

Coincidentally, Specter had previously investigated the background of the Humanity team, revealing that some senior members have "dark histories," including past involvement in mismanagement, legal disputes, and even financial misconduct, adding more mystery to the true story behind the theft.

A series of negative news triggered panic selling among investors. According to CoinGecko data, H tokens have plummeted 89% over the past 24 hours.

Humanity Protocol is a decentralized identity verification project that aims to combine biometric technology with "zero-knowledge proofs," allowing users to prove they are "real humans" without revealing personal data.

Ironically, this project, which champions security, privacy, and trust, has now seen its long-established credibility shattered in an instant due to a suspicious cybersecurity crisis.

• This article is reprinted with permission from: 《BlockBeats》
• Original title: 《Humanity Protocol Shocked by $32 Million Theft! Native Token H Crashes 89% in One Day》
• Original author: Block Sister Mel