Harmony’s ONE dives 26% after an attack appears to mint tokens equal to quarter of supply

Harmony is grappling with the possibility of rolling back its blockchain following allegations that an attacker manipulated the network to mint approximately 4 billion ONE tokens, constituting roughly 26% of the token's total supply. In response to claims made by an X account named "Juiceberg," Harmony is collaborating with exchanges to freeze and halt transactions.

The layer-1 blockchain provider announced it is developing a fix and assessing rollback options. However, Harmony has not verified the origin of the exploit, the exact quantity of tokens forged or the funds transferred to exchanges. Cointelegraph reached out to Harmony for comment but has not received a reply as of publication. The warning comes after an X user alleged that unauthorized ONE tokens were created via empty blocks, with around 2.8 billion tokens swiftly delivered to exchanges as the price of ONE declined.

Juiceberg estimates that the attacker still possesses about 115 million ONE, representing roughly 2.9% of the purportedly minted tokens, with the remainder either sold or stored in exchange deposit wallets. CoinGecko data indicates that ONE experienced a 33.9% drop over the past 24 hours. This incident echoes Harmony's June 2022 Horizon Bridge hack, which resulted in the loss of around $100 million worth of cryptocurrency.

The Federal Bureau of Investigation (FBI) subsequently linked the breach to North Korea's Lazarus Group.