EU authorities arrest suspects in $14 million hologram heist

EU authorities have arrested multiple individuals in connection with a massive €13 million (approximately $14.4 million) heist involving the Holograph protocol. This major development follows an extensive two-month investigation led by the French Bureau for the Prevention of Cybercrime, the Brigade de Répression du Banditisme (BRI), Europol, the Italian Directorate for Anti-Mafia Investigations and the Cayman Islands Police.

On June 13, 2024, Holograph, a prominent omnichain tokenization platform, fell victim to a sophisticated attack. Hackers exploited a vulnerability in the platform’s operator contract to mint and steal as much as 1 billion HLG tokens, worth approximately €13 million. This breach resulted in a dramatic drop in HLG’s value, by over 80%, and serious financial losses.

Arrests due to holographic hack

After an incredibly intense two-month pursuit by the French Office for the Prevention of Cybercrime (OFAC), BRI, @Europolthe Italian Directorate for Anti-Mafia Investigations, & @Politie_Cayman (RCIPS), we are pleased to report that several arrests have been made… photo.twitter.com/4ZF076tLkJ

— Holograph (@holographxyz) August 14, 2024

The stolen tokens were quickly converted to Tether (USDT) shortly after the attack. Authorities began pursuing the suspects almost immediately, coordinating their efforts across multiple countries. The investigation revealed that the attackers were Eastern Europeans in their 30s. They were initially believed to be based in France, leading to a cross-border effort to apprehend them.

A pivotal moment came on August 7, 2024, when Italian police arrested four suspects — two men and two women — all in their 30s. The arrests were made in Italy with French assistance. The main suspect, identified as a former service provider for Holograph, is believed to have had insider knowledge that made the hack possible.

Following the arrests, authorities seized significant assets and electronics from the suspects and froze some of their funds. The suspects are now awaiting extradition to France, where they will face further legal proceedings. French investigators have reported that they have already recovered 80% of the stolen tokens, which has helped to limit some of the financial damage to Holograph.

Holograph has since implemented stricter operational risk controls to prevent future incidents. The ongoing investigation is focused on analyzing the seized evidence and recovering the remaining stolen assets. As the case continues to develop, Holograph and the broader cryptocurrency community eagerly await further updates on asset recovery and additional details on the progress of the investigation.