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Humanity Protocol pivots to enterprise AI following $36 million exploit

A $36 million security breach has forced Humanity Protocol to abandon its primary focus on blockchain identity in favor of enterprise artificial intelligence. Founder Terence Kwok confirmed the move, noting that while the shift was previously under discussion, the June exploit significantly accelerated the company’s strategic overhaul.

The project is now repositioning itself to build products for corporate AI clients, arguing that these systems require robust verification methods for users and credentials. Humanity Protocol intends to leverage its existing digital identity framework, which previously supported proof-of-personhood applications for employment and credit scoring, to serve this new market. According to Kwok, the team has already begun testing enterprise-focused offerings, building on previous partnerships like those with Mastercard.

Recovery efforts remain a priority as the company manages a new token rollout and coordinates with law enforcement in Hong Kong and the United States. Kwok admitted that reclaiming the stolen funds is unlikely, citing the difficulty of such investigations. Forensic analysis conducted with Quantstamp revealed that the hack originated from a developer device infected with malware, which allowed attackers to compromise private keys rather than exploiting smart contract vulnerabilities. The breach, which analysts linked to North Korea-associated actors, triggered an 89% collapse in the value of the H token, prompting the current ecosystem rebuild.

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