Humanity Protocol Loses $32m in Private-key Hack – Token Crashes 80% as Zachxbt Raises Fraud Questions
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Written by
Simonas Brazionis - Updated 2026-06-09 13:05:37
A decentralised identity project that raised $50 million from backers including Jump Crypto, Hex Trust and Kingsway Capital has suffered one of the sharpest token collapses of 2026 after attackers compromised private keys linked to a Humanity Foundation member and drained over $30 million from at least 17 wallets. The H token fell from roughly $0.67 to near $0.05 within hours of the theft becoming public – an 80 percent loss in a single session.
Humanity Protocol is a biometrics-based decentralised identity project that uses palm-scan technology to verify unique human identity on-chain. Positioned as a rival to Worldcoin, it had attracted significant institutional backing and was considered one of the more credible entrants in the on-chain identity space before today's events.
How the Attack Unfolded
The attacker did not exploit a flaw in Humanity Protocol's smart contract code. Instead, they obtained the private keys of a foundation member and used that administrative access to simultaneously drain multiple wallets. The theft went further: the attacker then minted an additional 100 million H tokens on BNB Chain, worth approximately $12.9 million at the time, and transferred them to a freshly created wallet. The newly minted supply hit the market at the same moment as the stolen token dump, creating a compounding sell pressure that liquidity pools could not absorb.
On-chain security firm Blockaid flagged the minting transaction and confirmed the attacker had seized the H token's proxy admin contract on BNB Chain. Founder Terence Kwok confirmed the key compromise and said the team was working with security firms and the best crypto exchanges to contain damage and freeze stolen funds where possible.
| Metric | Value |
|---|---|
| Total funds drained | $32 million+ |
| Wallets compromised | 17+ |
| H tokens minted by attacker | 100 million |
| H token price drop | ~80% (from $0.67 to $0.05) |
| Attacker portfolio at peak | $45 million |
| Upcoming token unlock (June 25) | ~266 million H |
| Project fundraise total | $50 million |
Zachxbt Raises a Different Possibility
On-chain investigator ZachXBT publicly questioned whether the hack was genuine within hours of its disclosure. He suggested the attack may have been staged and that the team could have colluded with a market maker. ZachXBT also noted that three of the project's four founders have backgrounds involving active lawsuits, financial fraud allegations and ineffective management of prior ventures. The claims have not been independently verified, but they add a significant layer of uncertainty over an already chaotic situation.
What to Watch
A batch of approximately 266 million H tokens is scheduled to unlock on June 25 across six allocations including the foundation treasury and a strategic reserve. If the team cannot produce a credible on-chain forensics report before that date, the unlock risks triggering a second wave of selling. The incident is also a sharp reminder of why understanding what is cryptocurrency – and specifically how private-key custody works – matters as much as any other factor when evaluating DeFi projects.
Markets will watch whether Humanity Protocol can deliver a credible recovery plan, whether exchanges halt H trading, and whether ZachXBT's fraud claims gain traction with independent security researchers. The next 72 hours are likely decisive for the project's long-term credibility.
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