Harmony (ONE) crypto, a blockchain and token that run on an Ethereum network and work to solve the “trilemma” of balancing scalability, security and decentralization, has been hacked to the tune of $100 million, joining a long list of crypto firms targeted by thieves.
Hackers targeted Harmony’s Horizon bridge, a platform that lets traders swap coins between different blockchains, on Thursday. As more cryptocurrencies are adopted, projects like Harmony are developing bridges that can accept a variety of tokens and move them fluidly between blockchains, Bloomberg reported.
The Harmony bridge let users exchange assets such as tokens, stablecoins and non-fungible tokens (NFTs), between the Ethereum, Binance Smart Chain (BSC) and Harmony blockchains.
Bridges are vulnerable to hacks because their technology is complex and they are often run by anonymous teams. Hackers have repeatedly targeted bridges and there is no clear way to safeguard funds, Bloomberg reported.
Harmony said in a tweet that it was working with “national authorities and forensic specialists to identify the culprit and retrieve the stolen funds.” The Federal Bureau of Investigation (FBI) and cybersecurity firms are part of the search for the attacker, Harmony said in a later tweet.
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It was unclear whether any user funds were stolen at Harmony ONE. Harmony tweeted that the hack did not impact its Bitcoin bridge and that funds and assets stored on decentralized vaults were “safe at this time.”
At 8:08 p.m. on Monday, June 27, @harmonyprotocol tweeted, “We are aware the hacker has begun to move funds through Tornado Cash. The team is working with two highly reputable blockchain tracing and analysis partners, and collaborating with the FBI as part of an investigation into this criminal act.”
Harmony and its ONE token were launched as part of the Binance Launchpad’s initial exchange offering in May 2019. Investors including Silicon Valley-based Consensus Capital participated in the fundraising of $18 million in April 2019. Investors bought almost $2.8 billion worth of ONE tokens. Token holders can earn block rewards and be rewarded for keeping the system running smoothly.
Harmony ONE tokens were trading at $0.02 as of this writing with a total market cap of $250,886,262, down from a high of around $0.375 in January 2022.
This year alone, bridges have been robbed of more than $1 billion including the Wormhole bridge, hacked for $326 million in February, and Ronin, robbed of $625 million in April.