Layer1 project Harmony suffered an attack, suspected inflation of 4 billion ONE tokens. The official response stated that they are collaborating with exchanges to freeze the funds.

August 12th, Harmony Protocol announced that the team is collaborating with relevant exchanges to attempt to block and freeze the funds involved in this incident. At the same time, they are working on a fix and evaluating rollback options.

Earlier, on-chain data analysis indicated that Harmony was suspected of being attacked. The attacker exploited a vulnerability related to empty blocks to mint around 4 billion ONE tokens without authorization, accounting for approximately 26% of the current supply. Subsequently, about 2.8 billion ONE tokens were transferred to an exchange, triggering a sell-off and causing a significant drop in the ONE price.

Analysis shows that the attacker leveraged a supply verification mechanism flaw, causing the totalSupply function to not accurately reflect the actual newly minted tokens, concealing the inflation impact. Harmony has stated that they will provide further updates on the incident once more information is available. Currently, the event is still under investigation.