A major exploit has been detected involving a token labeled as $DOT on the Ethereum network, where an attacker successfully minted 1 billion tokens and liquidated them in a single transaction.
On-chain data shows the attacker swapped the entire minted supply for approximately 108.2 ETH, valued at around $237,000 at the time of execution. The transaction was routed through decentralized exchange infrastructure, indicating the use of automated liquidity pools.
Preliminary analysis suggests that the exploit was likely caused by a vulnerability in the token’s smart contract, allowing unauthorized minting. The incident does not appear to affect the native Polkadot network, but rather a tokenized or bridged version deployed on Ethereum.
Such exploits highlight ongoing risks in decentralized finance (DeFi), particularly in projects with unaudited or poorly secured smart contracts. Users are advised to exercise caution and verify contract legitimacy before interacting with newly issued or cross-chain assets.
Investigations into the exploit are ongoing, with no official statement yet from the project behind the affected token.