Hinkal: Will fully compensate user funds, confirming that approximately 797,000 USDC was withdrawn and exchanged for 454 ETH by the attacker

The decentralized privacy protocol Hinkal has released a security incident update, confirming that attackers extracted approximately 797,000 USDC from its Ethereum contract through a series of transactions and exchanged it for about 454 ETH. Approximately 410 ETH was subsequently transferred to Tornado Cash, while the remaining approximately 44.67 ETH was cross-chain transferred to the Bitcoin network via THORChain. They are currently tracking the flow of funds in collaboration with external security teams.

Hinkal stated that this security incident is limited to the relevant funds pool on the Ethereum chain, and other on-chain contracts have not been affected. However, all contracts have been temporarily suspended for repairs and security verification. All affected user funds will be compensated at a 1:1 ratio, and the specific compensation process and timeline will be announced in future updates.