Harmony Faces Potential Blockchain Rollback Amid Suspected ONE Token Inflation

Harmony is facing a potential rollback of its blockchain after a suspected exploit led to the inflation of ONE tokens by nearly 4 billion, or about 26% of the token's supply.

The incident occurred when an attacker allegedly minted new ONE tokens through empty blocks and then quickly funneled approximately 2.8 billion tokens to exchanges as the price of ONE fell.

Juiceberg, an X account, claimed that the unauthorized tokens were created this way, with the remainder either sold or held in exchange deposit wallets.

The blockchain project is working with exchanges to stop and freeze funds and is preparing a patch while evaluating rollback options.

This comes after Harmony's June 2022 Horizon Bridge hack, which led to the theft of about $100 million in cryptocurrency attributed to North Korea's Lazarus Group.