TechFlow reports, on July 4, the decentralized privacy protocol hinkal released a security incident update, confirming that attackers extracted approximately 797,000 USDC from its Ethereum contracts through a series of transactions and swapped them for approximately 454 ETH, of which approximately 410 ETH were subsequently transferred to Tornado Cash, while the remaining approximately 44.67 ETH were cross-chain transferred to the Bitcoin network via THORChain; hinkal is currently jointly tracking the fund flow with external security teams.
hinkal stated that the impact of this security incident is limited to the relevant liquidity pools on the Ethereum chain, contracts on other chains were not affected, but all contracts have been temporarily paused for repairs and security verification; all affected user funds will be fully compensated at a 1:1 ratio, and specific compensation processes and timelines will be announced in subsequent updates.
