$HAI Token Crash: How Hacken, a Web3 Security Firm, Got Hacked

The $HAI token crash was one of the most ironic and dramatic events in Web3 history. On June 21, 2025, hackers breached Hacken a company whose entire brand is built around blockchain security. In just hours, $HAI lost over 97% of its value, exposing not only a compromised bridge but also fragile assumptions about trust in decentralized ecosystems.

What Is Hacken and Why the $HAI Token Matters

Hacken is one of the longest-standing cybersecurity firms in Web3. Known for smart contract audits, bug bounty programs, and tools like CER.live, it has worked with hundreds of crypto projects. $HAI is its utility token, used for governance, staking, and access to premium tools like HackenAI and the Hacken DAO.

Previously, the token operated across multiple blockchains VeChain, Ethereum, and Binance Smart Chain using custom bridges to maintain parity.

What Caused the $HAI Token Crash?

The $HAI token crash was triggered by a leaked private key controlling a key bridge smart contract. With this key, attackers minted an unlimited number of fake $HAI tokens on Ethereum and BSC.

They quickly dumped these fake tokens on decentralized and centralized exchanges. This led to:

• A 97% price collapse within hours.
• Over $1 billion in wiped-out trading volume.
• Total loss of liquidity across chains.

Trust in the project eroded overnight.

How Hacken Responded to the Breach

In the immediate aftermath of the $HAI token crash, Hacken:

• Paused all bridge transactions between Ethereum, BSC, and VeChain.
• Declared VeChain-based tokens as the only valid version.
• Urged users to stop trading on compromised chains.
• Launched a forensic investigation.

However, the community criticized the team for slow communication and the use of single-key governance on critical infrastructure.

Security Flaws Exposed by the Hack

This wasn’t just a bridge hack it exposed a broader failure in internal controls. The biggest red flags included:

• No multi-sig protection for key contracts.
• No real-time alerting for abnormal minting.
• No emergency pause mechanisms.
• Over-reliance on custom bridge logic.
• Lack of public audits for internal infrastructure.

For a firm focused on securing others, these issues severely damaged Hacken’s credibility.

Rebuilding After the $HAI Token Crash

Hacken responded by announcing a full rebuild of the $HAI ecosystem. On June 24, the team introduced a new token architecture based on LayerZero’s Omnichain Fungible Token (OFT) standard.

Key changes include:

• Unified token supply across Ethereum, BSC, and Base.
• Native token movement via secure LayerZero protocols.
• Elimination of wrapped tokens and custom bridges.
• Only one active bridge (SafeSwap) between VeChain and Base.

This simplifies the architecture and significantly reduces attack surfaces.

Enhanced Security Features

The new infrastructure is built with hardened security from the ground up:

• Multi-signature control using Gnosis Safe.
• Pausable contracts with on-chain emergency control.
• Upgradeable architecture via OpenZeppelin proxies.
• Integrated monitoring via Extractor.
• No custom minting or bridge logic.

These upgrades aim to prevent the conditions that allowed the original exploit to happen.

Snapshot and Claim Process for $HAI Holders

To protect legitimate users after the $HAI token crash, Hacken conducted a blockchain snapshot on June 20 at 18:40 UTC. The snapshot captured user balances across Ethereum, BSC, Base (HackPot), and SafeSwap transactions.

Recovery details:

• Exploiters and bot-linked wallets are excluded.
• Legitimate users can claim 1:1 $HAI via the hAI App.
• Claims verified via Merkle tree proofs.
• Six-month claim window; unclaimed tokens will be locked.

Important Recovery Dates

• Snapshot completed: June 24
• Contract deployment: June 24 – July 3
• hAI App relaunch: July 7
• Liquidity reboot: July 7–11

The new omnichain $HAI token will officially replace all previous versions starting in July.

The Current State of the Project

As of now:

• Ethereum and BSC tokens from the old system are invalid.
• VeChain token remains active.
• Only SafeSwap is supported for cross-chain movement.
• DAO, staking, and product utility will relaunch with the new token.
• Tokenomics updates are expected soon.

Hacken appears committed to transforming not just relaunching its ecosystem after the $HAI token crash.

Web3’s Reaction to the Hack

The $HAI token crash triggered strong reactions across the crypto space:

“If Hacken can’t secure its own token, how can it secure others?”
“Why are we still losing funds to single-key contracts in 2025?”
“Time to rethink bridges again.”

Several clients reportedly paused audits or reassessed partnerships.

What the $HAI Token Crash Means for Web3 Security

This event didn’t just damage Hacken it cast a shadow over the entire blockchain security industry.

Key lessons:

• Even security firms must decentralize key access.
• Custom bridges remain a major vulnerability.
• Recovery planning and snapshot strategies are essential.
• Real-time infrastructure monitoring must be standard.

The industry is watching how Hacken recovers not just technically, but in regaining community trust.

Final Thoughts: After the $HAI Token Crash

The $HAI token crash stands as a harsh reminder that even the most security-focused teams are not immune to foundational mistakes. A secure smart contract means little if the bridge or key management around it fails.

To its credit, Hacken is not brushing this under the rug. The OFT-based rebuild, new governance controls, and transparent claim process are strong first steps. Whether users and partners return will depend on what happens after the July relaunch.