In a significant development, Italian law enforcement has apprehended four individuals linked to a high-profile cryptocurrency heist involving Holograph, a blockchain tech firm. The suspects were arrested after spending weeks in luxury villas across Italy, including locations on Sardinia, Elba Island, and the Amalfi Coast. The arrest came after a comprehensive investigation by Italy’s Polizia di Stato, in collaboration with the French National Police, who tracked the suspects’ opulent lifestyle and financial activities.
The heist occurred on June 13, 2024, when hackers exploited a vulnerability in Holograph’s smart contract. This flaw allowed them to arbitrarily mint 1 billion HLG tokens, which were valued at $14 million at the time. However, the value of these tokens plummeted by over 80% shortly after the theft. The breach was traced back to a former technical contractor with inside knowledge of the platform, raising concerns about the security of proprietary blockchain protocols.
During the investigation, authorities seized crucial evidence, including cryptocurrency wallet private keys, codes, ledger keys, and various electronic devices. This evidence is expected to aid in the recovery of the stolen funds and further expose the full extent of the operation. The arrest of two suspects has already been made, with extradition proceedings to France underway. The remaining two individuals are under investigation but have not yet been detained.
In response to the arrests, the value of the stolen HLG tokens has seen a significant rebound, rising by 28.3% in the last 24 hours and 59.4% over the past week. Despite this recovery, the current value of HLG remains below pre-heist levels. The ongoing investigation and seizure of assets offer hope for a complete recovery of the stolen cryptocurrency and a deterrent against future cybercriminal activities.
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