Harmony Faces Crisis Over Unauthorized Token Creation

Harmony's latest exploit has led to a dispute between the project and blockchain investigator ZachXBT. Harmony is seeking to contain the damage by freezing addresses linked to the incident and preparing a network rollback.

The unauthorized creation of around 4 billion ONE tokens, which represents about 26% of the pre-exploit supply, has caused a collapse in the asset's market price. Approximately 2.8 billion ONE have been moved towards exchanges, further complicating the recovery efforts.

ZachXBT has refused to assist Harmony with its latest exploit, citing the project's handling of outside assistance after the $100 million Horizon Bridge hack in 2022. He claims that researchers who contributed to tracing funds and securing freezes were not compensated for their work.