Harmony, the Layer-1 blockchain protocol, has mapped out a sprawling web of unauthorized token transfers after an exploit flooded the network with billions of freshly minted ONE tokens. The team identified 10,288 transactions funneling fraudulent tokens into 409 distinct wallets.
Approximately 4 billion ONE tokens were minted without authorization. That figure represents roughly 26% of Harmony’s entire prior token supply.
How the exploit unfolded
The attacker exploited a vulnerability involving empty blocks to mint the tokens, a technique that bypassed normal validation mechanisms on the network.
Around 2.8 billion of the fraudulently minted ONE tokens were quickly routed toward various cryptocurrency exchanges. ONE’s price cratered between 26% and over 50% intraday as traders digested the news.
