Humanity Protocol Exploit: Worldcoin Rival’s Nightmare Just Got Worse

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Decentralized identity network Humanity Protocol is facing a rapidly escalating security crisis after an attack that initially appeared to involve a handful of compromised wallets grew into losses exceeding $32 million. Onchain investigator Specter first flagged suspicious activity affecting wallets tied to the project before Humanity founder Terence Kwok confirmed that private keys belonging to a Humanity Foundation member had been compromised. The situation worsened throughout the day as additional theft addresses emerged, stolen funds were swapped into ETH, and investigators reported the unauthorized minting of 100 million H tokens.

Attack Expands From Millions to Tens of Millions

Specifically, the incident first surfaced on June 9 when Specter reported that more than 17 wallets holding Humanity Protocol’s H token had been drained, with losses initially estimated at over $5 million. According to the investigator, all identified victim addresses appeared to have interacted with Humanity Protocol, suggesting a shared point of exposure.

As the investigation progressed, the scale of the attack grew substantially. Updated figures published by Specter showed total losses exceeding $19 million before later rising above $32 million. Investigators estimate that approximately $23.7 million worth of stolen assets has already been swapped into ETH, while another $7.9 million remains held in H tokens.

Screenshots shared by investigators show wallets connected to the attack holding millions of dollars worth of Ethereum (ETH), BNB, and Tether (USDT). One address alone appeared to control nearly $5.7 million in assets after receiving funds linked to the exploit.

The situation took another turn when Specter reported on the minting of 100 million H tokens and their sale for BNB. Blockchain records shared by investigators appear to show the minting activity flowing into one of the wallets associated with the attack.

Humanity Confirms Key Compromise

Humanity founder Terence Kwok later acknowledged the security incident on X.

“We’ve detected a security incident involving the compromise of private keys belonging to a member of the Humanity Foundation,” Kwok wrote. He urged users not to interact with the project’s bridge or liquidity pools until further notice as security teams investigate the breach.

The team says it is working alongside security specialists and exchange partners to contain the damage and prevent further losses. Humanity also apologized to users and pledged to provide updates as the investigation continues.

That said, prominent blockchain investigator ZachXBT questioned whether the incident was solely the result of stolen private keys, and suggested the possibility of involvement of a market maker or insider. He stated that he wasn’t buying the team’s version of events and described the explanation as convenient.

The fallout has been severe. According to the latest charts on June 9, Humanity’s H token plunged as much as 81% during the crisis and wiped out significant value as traders rushed for the exits in the last 24 hours. It’s currently trading at $0.1411, which also represents an 82.5% drop across the week and a decline of 31.8% over the month.

The attack also arrives at a difficult moment for the crypto industry, where bridge exploits and token minting incidents continue to rank among the most damaging security failures in the sector.

Whether the losses stop at $32 million remains unclear. Investigators continue tracking theft addresses, and the list of wallets connected to the attack has expanded throughout the day.

The post Humanity Protocol Exploit: Worldcoin Rival’s Nightmare Just Got Worse appeared first on TechGaged.com.