Harmony Protocol Exploit Suspected: 4B ONE Illegally Minted, Token Slides Over 30%

Harmony Protocol is investigating a suspected exploit that allegedly led to the unauthorized minting of roughly 4 billion ONE tokens—about 26% of the asset's total supply—according to onchain analyst Juiceberg. Market reaction was swift. ONE fell more than 30% as the newly minted tokens began moving across the network and into cryptocurrency exchanges. Onchain traces cited by Juiceberg suggest the attacker minted ONE via empty blocks. Roughly 2.8 billion ONE was reportedly funneled to exchanges, potentially for sale. Available onchain data indicated about 115 million ONE remained onchain at the time of reporting. Harmony has not disclosed the underlying vulnerability and has not confirmed the final amount involved. Harmony said it is coordinating with exchanges to halt flows tied to the incident and asked platforms to block and freeze funds linked to four clusters of wallet addresses, spanning both Harmony ONE addresses and Ethereum addresses used in the fund movements: one1uap8dx2z0qsjxqthm5flgcxkeepsz3gsrghnfn 0xe7427699427821230177dd13f460d6ce43014510 one17u300a40ll5wphd8kj5hktryhdjq3ml9f4phy4 0xf722f7f6afffe8e0dda7b4a97b2c64bb6408efe5… The team said a patch is in development and that rollback options are under review, which could potentially reverse impacted transactions. Harmony said it will provide additional updates as details are confirmed. The sudden supply expansion drove heavy selling pressure. Further downside risk remains if a meaningful share of the remaining newly minted tokens reaches the market.