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Hinkal confirmed that approximately 797k USDC was withdrawn by the attacker and exchanged for 454 ETH, and will fully compensate user funds.
Shenchao TechFlow message: On July 04, decentralized privacy protocol hinkal released a security incident update, confirming that the attacker extracted approximately 797,000 USDC from its Ethereum contract through a series of transactions, and exchanged it for approximately 454 ETH. Of this, approximately 410 ETH was subsequently transferred to Tornado Cash, and the remaining approximately 44.67 ETH was cross-chain transferred to the Bitcoin network via THORChain. The team is currently working with external security teams to trace the flow of funds.
hinkal stated that the impact of this security incident is limited to the relevant liquidity pools on the Ethereum chain, and that contracts on other chains are unaffected. However, all contracts have been temporarily suspended for repair and security verification, and all affected users’ funds will be fully reimbursed on a 1:1 basis. The specific compensation process and timeline will be announced in a subsequent update.