• The Saga blockchain halts SagaEVM chain after $7 million crypto hack.
• Despite the hack, the crypto market rebounds, with BTC reclaiming the $90k level.
• Easing geopolitical tensions and regulatory hopes push the crypto prices higher. 

The Layer 1 blockchain platform, Saga, has faced a significant crypto hack, losing about $7 million. The Saga blockchain reportedly paused the network after an unauthorized withdrawal of around $7 million in USDC, which was bridged and later converted into Ethereum.

While this blockchain security incident is still under investigation, the crypto market remains positive. Despite massive losses due to the crypto hack, top cryptocurrencies, including Ethereum, are trading in the green zone. While Bitcoin climbed back to $90k, other altcoins like XRP, Solana, and BNB have also posted modest gains.

Saga Blockchain Halts SagaEVM after $7M Crypto Hack

The Saga blockchain has temporarily halted its network after suffering a major crypto hack on its SagaEVM chain. This attack resulted in a loss of $7 million in USDC, as the hacker withdrew the tokens via unauthorized access. The stolen USDC were later bridged and converted into Ether.

In an official blog post, the team announced its decision to shut down the SagaEVM chain due to the Saga blockchain hack. While the issue is currently being investigated, the team has paused the network at block height 6,593,800.

According to the Saga blockchain, the crypto hack involved a series of coordinated transactions that moved liquidity. This cleared the path for the attacker to drain the funds. “The attack was a coordinated sequence of actions: deploying smart contracts, conducting cross-network operations, and subsequently withdrawing liquidity,” stated the post. The team added that they are working together to prevent further movement of assets and to make fund recovery soon. The platform stated,

“SagaEVM remains paused while we finalize the results of our investigation into the Jan 21 exploit…We’re working with partners on remediation and will publish a post-mortem once findings are fully validated.”

Crypto Prices Rise Despite the Crypto Hack

Following the Saga blockchain hack, the focus is now shifting towards the crypto market’s resilience. Usually, such huge security incidents impact the crypto prices severely. But here, the cryptocurrencies stood firm without retreating, but showed marginal positive signs.

As per CoinMarketCap data, the global crypto market is up by 0.97%, hitting $3.04 trillion. While Bitcoin dropped below the critical $90k after holding the zone for a period, it managed to recover slightly. Although the cryptocurrency once again slipped below the mark, it is still trading in green, with a marginal 0.92% daily surge. With its price at $89,969, the coin has seen a notable decline of 7% over the past week, despite a 3% monthly hike.

Meanwhile, Ethereum is trading at $3,011, still managing to hold its critical support of $3k. While the token has fallen by 10% over the past week, it is up by 1.9% in a day and 1.63% in a month. Other tokens like XRP, Solana, and BNB have also seen notable surges of 2.8%, 2.11%, 2.54%, respectively, over the last 24 hours.

What Triggers this Rebound?

Notably, the crypto market has slightly recovered from recent losses, despite the $7 million Saga blockchain hack. This is mainly due to the loosening geopolitical tensions and the nearing CLARITY Act passage.

Reportedly, Donald Trump dropped plans to impose tariffs on European countries and ruled out using military force to acquire Greenland. These decisions have eased broader geopolitical tensions, thus influencing the crypto market. Also, increasing anticipation of the Senate’s passage of the market structure bill has also influenced the industry.