Humanity Protocol is starting to turn the page after the $36 million exploit that rocked the project earlier this month. The blockchain identity platform has begun distributing replacement H tokens to eligible users as announced on Wednesday, marking a key step in its recovery plan.
In an update shared on X, the team confirmed that users who held H tokens on Binance Alpha, Bybit, Bitget, KuCoin, MEXC, and Gate before the hack will receive new tokens through a 1:1 airdrop.
The idea of the move is to replace the compromised tokens with a newly audited ERC-20 version and help affected users recover their holdings while the project rebuilds.
How will the replacement take place?
For most users, the process will happen automatically. If one has held H tokens on one of the supported exchanges during the pre-exploit snapshot period, they’ll receive an equivalent amount of the new tokens. Humanity Protocol said the snapshots taken before the attack will determine eligibility for the distribution.
The announcement gives users a clearer picture of what happens next after weeks of uncertainty following the breach.
Major exchanges have already started putting the plan into action. Binance Alpha temporarily suspended H token trading to complete the contract migration from the older BEP20 standard to the new ERC-20 token. The exchange said users will receive the replacement tokens before trading resumes.
Bybit has also confirmed its support for the migration, assuring customers that their balances will remain unchanged during the process.
Bitget, KuCoin, MEXC, and Gate are following a similar approach, although each platform noted that only balances recorded before their respective suspension deadlines will qualify for the swap.
Importantly, wallets linked to the attackers have been excluded from the redistribution.
Humanity extends H token recovery to wallet and DeFi users
The recovery plan also covers users who hold tokens outside exchanges. Regular crypto wallets will receive the new tokens directly, while H tokens locked in liquidity pools and certain smart contracts will be moved into a separate vault until the team decides how those cases should be handled.
The token migration follows one of the biggest setbacks Humanity Protocol has faced.
Unlike many crypto hacks that exploit flaws in smart contracts, this attack reportedly stemmed from an operational security issue. According to reports, malware infected a developer’s computer where backup files containing private keys had been stored.
Those keys allegedly gave attackers access to important administrative wallets across Ethereum and BNB Chain, allowing them to drain approximately $36 million worth of assets.
Investigators have also pointed to possible links with North Korean hacking groups, though the investigation is still ongoing.
Because of those concerns, Humanity Protocol says some compensation claims will require additional KYC and AML checks to prevent fraudulent requests.
The team acknowledged that the recovery process has been difficult for users.
“We know the wait has been hard, and your patience through this has meant everything to us,” Humanity said in its update.
As part of the recovery effort, the project has launched a newly audited ERC-20 token contract designed to support Ethereum, BNB Chain, and Humanity’s own mainnet.
Security firm Quantstamp helped identify wallets connected to the attackers, and those addresses have been blocked from receiving replacement tokens.
The automatic airdrop is only one part of the plan.
Humanity has also created a compensation fund and claims portal for situations that the snapshot system can’t fully address. That includes users with tokens tied up in DeFi protocols or liquidity pools, as well as people who bought H after the exploit and still hold the token.
Some of those investors have argued that the snapshot date leaves legitimate buyers at a disadvantage, so the claims process is intended to help resolve those cases individually.
Looking ahead, Humanity Protocol is preparing to relaunch its mainnet, with the new H token expected to become the network’s native gas token.
The stolen funds themselves haven’t been recovered, but the project is moving forward rather than waiting for the investigation to conclude.
For Humanity, the token replacement is about more than compensating users. It’s an attempt to rebuild trust and show that the project can recover from a major security incident.
