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Hemi (Genesis Drop / MerkleBox Exploit)

avoid.net/hemi-genesis-drop-merklebox-exploit38/100·85% conf.
[AI-DRAFTED · AWAITING VERIFICATION]

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anchored·5ghTGy…t1Zu

Summary

Hemi is a modular Layer-2 blockchain protocol designed to bridge Bitcoin and Ethereum into a single supernetwork, co-founded by former Bitcoin core developer Jeff Garzik and Max Sanchez. On September 7, 2026, an attacker exploited a reentrancy vulnerability in the MerkleBox smart contract used for Hemi's Genesis Drop token distribution, draining approximately 124.5 million unclaimed HEMI tokens, which were liquidated for roughly $255,000 in stablecoins. The exploit was isolated to the Genesis Drop claim contract; the core Hemi network, HEMI and veHEMI tokens, and bridge infrastructure were not affected.

Connected Entities

7 entities · 60 linked investigations
Organizations
Ethereum64Hemi (Genesis Drop / MerkleBox exploit)Arbitrum52Hemi (Genesis Drop / MerkleBox Exploit)
Protocols
SushiSwap52LayerZero — DVN Single-Verifier Configuration Risk
Tokens
Relationships
  • Ethereummentioned withBitcoin(60%)
  • SushiSwapmentioned withArbitrum(65%)
  • SushiSwapmentioned withEthereum(60%)
  • Hemi (Genesis Drop / MerkleBox exploit)mentioned withEthereum(70%)
  • Hemi (Genesis Drop / MerkleBox exploit)mentioned withSushiSwap(65%)
  • Hemi (Genesis Drop / MerkleBox exploit)mentioned withBitcoin(80%)
  • Hemi (Genesis Drop / MerkleBox exploit)mentioned withArbitrum(65%)
  • LayerZero — DVN Single-Verifier Configuration Riskmentioned withBitcoin(65%)
  • LayerZero — DVN Single-Verifier Configuration Riskmentioned withEthereum(60%)
  • Hemi (Genesis Drop / MerkleBox Exploit)mentioned withLayerZero — DVN Single-Verifier Configuration Risk(65%)
  • + 3 more
Have evidence about Hemi (Genesis Drop / MerkleBox Exploit)?

Timeline(9 events)

12 March 2025

Hemi mainnet launched, positioning the protocol as a Bitcoin-Ethereum supernetwork L2 built on the OP Stack.

Crypto Briefing

7 September 2026

03:35:23 UTC — Attacker deployed three exploitation contracts on the Hemi network.

Hemi Genesis Drop Post-Mortem (via Binance Square)

7 September 2026

03:36:47 UTC — Attacker executed the reentrancy exploit against the MerkleBox Genesis Drop claim contract, draining approximately 124.5 million HEMI tokens via 63 recursive calls funded by a 2 million HEMI flash loan from SushiSwap.

Hemi Genesis Drop Post-Mortem (via Binance Square)

7 September 2026

03:43:59–03:56:23 UTC — Stolen tokens sold on Hemi's DEX for approximately $255,000 in stablecoins and bridged via LayerZero to Ethereum, Arbitrum, and BNB Smart Chain.

Hemi Genesis Drop Post-Mortem (via Binance Square)

7 September 2026

05:42 UTC — Hypernative security monitoring platform alerted the Hemi team to the exploit.

KuCoin Flash News

7 September 2026

06:11 UTC — Hemi team identified the root cause of the exploit. Partner outreach began at 06:20 UTC; SEAL 911 contacted at 07:57 UTC.

Hemi Genesis Drop Post-Mortem (via Binance Square)

8 September 2026

Upbit cancelled its planned HEMI listing approximately 18 minutes before the scheduled 9:30 p.m. KST opening, citing the exploit and apparent token theft.

Crypto.news

9 September 2026

Bithumb designated HEMI as a trading warning asset and suspended HEMI deposits at 11:50 KST, citing the smart contract vulnerability, abnormal token outflow, and inadequate timely disclosure.

PANews

9 September 2026

Hemi published an official postmortem confirming the exploit's scope, technical root cause, and ongoing recovery efforts.

Crypto Economy
Provenance & Audit Trail

Decision Log

This investigation is cryptographically anchored to the Solana blockchain (1 event). 10 of 10 cited source URLs have an Internet Archive snapshot.

model: claude-sonnet-4-6

generated: 9/18/2026, 5:12:03 PM

last updated: 9/18/2026, 8:46:46 PM

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