Compromised Keys, Minted Tokens & 90% Crash: Humanity Protocol’s Worst Day

Story Highlights

• Attackers allegedly used compromised private keys linked to a Humanity Foundation member to drain more than $32 million from at least 17 wallets connected to the project.
• The hacker rapidly sold H tokens for ETH and BNB, minted additional H tokens on BNB Chain, and triggered an estimated 80% to 90% price crash, leaving liquidity severely depleted.
• Humanity Protocol has advised users to avoid interacting with its bridge and liquidity pools while investigations continue, as on-chain analysts and researchers publicly question the project's explanation of the incident.

It has been a brutal day for Humanity Protocol holders after the project confirmed a major security incident that quickly turned into one of the biggest crypto exploits of the month.

The team revealed that private keys belonging to a member of the Humanity Foundation had been compromised, prompting an urgent warning for users to avoid interacting with the protocol’s bridge or liquidity pools until further notice.

While the investigation is still ongoing, on-chain data suggests the damage is already substantial.

Humanity Protocol Founder Comments

Block Insider team reached out to Humanity Protocol founder Terence Kwok, who has made some interesting clarification about the case,

"I understand the skepticism, and I'm not going to pretend the optics are good. But let me address what actually happened rather than the narrative. There are no MM agreements, as ZachXBT claims.”

He said, that this entire issue was a management failure but he assured that, “this wasn't a rugpull.”

He further assured that their team was working around the clock to stop the damage, work toward a resolution, and make sure those affected are compensated.

Kwok further added,
“Much of our investor base and traction sits outside Crypto Twitter and the pump was a result of ongoing conversations with $H whales about upcoming projects and announcements. A project not being loud on Crypto Twitter isn't evidence that it lacks substance or can't perform. We'd rather let the recovery, the disclosures, and how we treat affected users speak for themselves."

Team Confirms Security Breach

In an official statement, Humanity Protocol said it is working with security experts and exchange partners to assess the full scope of the attack and secure affected systems.

The project urged users not to interact with the bridge or liquidity pools, calling it the most important step holders can take to protect their funds right now.

The team also warned users to ignore scammers and fake accounts, stressing that official updates will only come from Humanity Protocol’s main account or founder Terence Kwok.

Hacker Drains More Than $30 Million

According to blockchain tracker Lookonchain, the attacker wasted no time after gaining access.

The hacker reportedly began minting and dumping massive amounts of H tokens before converting the proceeds into ETH and BNB. Initial estimates showed more than $30 million had already been extracted from the ecosystem.

Lookonchain later reported that the attacker minted an additional 100 million H tokens on BNB Chain, adding even more selling pressure to an already collapsing market.

So far, the hacker has reportedly accumulated around 18,510 ETH worth roughly $30.8 million and another 1,548 BNB worth about $924,000.

Even more concerning, the attacker still holds roughly 111 million H tokens valued at around $14 million, though on-chain liquidity is now nearly exhausted.

H Token Collapses 90%

The market reaction was immediate.

As the hacker flooded the market with newly minted tokens, H experienced a massive selloff. Within hours, the token had lost roughly 90% of its value as traders rushed for the exits.

The attack followed a familiar pattern often seen in token exploits. First, the attacker gains access to privileged controls. Then new tokens are minted or existing assets are drained. Finally, those assets are aggressively sold into the market and converted into more liquid cryptocurrencies such as ETH.

That process creates overwhelming sell pressure, causing panic among holders and rapidly crushing the token price.

ZachXBT Questions Humanity Protocol

The incident also drew criticism from blockchain investigator ZachXBT.

Responding to the team’s explanation, he questioned whether the community would accept the project’s version of events without additional transparency.

“You choose to crime pump your token for weeks with zero fundamentals and think CT will blindly trust your story?” he wrote, while calling for disclosure of active market-maker agreements tied to a Hong Kong entity.

His comments added another layer of controversy to an already chaotic situation.

What Happens Next?

Right now, the focus has shifted from price action to damage control.

Traders are closely monitoring the hacker’s wallets, waiting to see whether the remaining H tokens get sold and whether any of the stolen funds can be frozen or recovered.

For Humanity Protocol holders, the situation remains highly uncertain. Until investigators provide more details and the team restores confidence in the ecosystem, volatility is likely to remain extreme.

Update: BlockInsider team reached out to Humanity protocol, their founder came back with a statement which was added in a recent update to the article.