Italian Police Arrest 2 People in $14 Million ‘Holograph’ Cryptocurrency Heist

Italian authorities recently announced the arrest of two individuals with ties to a high-profile cryptocurrency heist against Holograph, a prominent crypto finance entity.

The malicious operation led to the theft of $14 million worth of cryptocurrency through a smart contract vulnerability after threat actors exploited blockchain technology to siphon funds undetected.

Alleged Perpetrators Caught After Boasting Luxurious Lifestyle

Italian police arrested the suspects after they reportedly funded a lavish lifestyle with the stolen digital assets, living in luxury villas and indulging in high-end amenities across Italy.

The Polizia di Stato announced the arrests over the weekend, adding that the suspects had been under surveillance for weeks. They frequented fine dining establishments, chartered private jets and yachts, and rented luxury cars with chauffeurs, hopping between destinations like Sardinia, Elba Island and the Amalfi Coast.

Heist Left Holograph Short of $14 Million Worth of Crypto Assets

The heist occurred on June 13, 2024, when the perpetrators exploited a flaw in a smart contract to illicitly mint 1 billion HLG, Holograph’s proprietary crypto token.

Threat actors withdrew the amount in nine transactions, totaling approximately $14 million. However, merely hours after the theft, the value of the token plummeted more than 80%, severely impacting its market stability.

Holograph had earlier indicated that the breach was executed by a former technical contractor with intimate knowledge of the platform's inner workings, suggesting an inside job that escalated to sophisticated cybercrime.

Two of Four Suspects Arrested, Remaining Two are Under Investigation

After the heist, authorities issued European arrest warrants, leading to the arrests of two of the four suspects, now held in Salerno prison awaiting extradition to France. The remaining suspects are still under investigation but have not been detained.

During the operation, police seized several crypto wallet private keys, ledger keys and other electronic devices, which are being examined for further evidence. Following the arrests, HLG’s market value saw a partial recovery of 28.3% in the last 24 hours.