A massive minting exploit has wiped out the value of TesseraDAO's TSR token, leaving liquidity pools drained and investors holding worthless assets. On-chain data flagged by security firm PeckShield reveals that an attacker successfully minted 99 million TSR tokens on the BNB Chain before dumping them onto the market.
The sudden flood of supply triggered an immediate 99% price collapse.
According to security analysts, the exploit was executed with clinical efficiency. On-chain researcher Spreek first spotted the anomalous minting activity, which occurred roughly 19 hours before PeckShield's public alert on June 2. The attacker quickly swapped the newly minted TSR tokens for approximately 2.5 million USDT, effectively draining the available stablecoin liquidity in the project's primary pools.
But the exploit did not stop on the BNB Chain.
To cover their tracks, the attacker bridged the stolen USDT to the Ethereum mainnet. Once on Ethereum, the funds were converted into ether, with 1,285.5 ETH subsequently funneled through the sanctioned privacy protocol Tornado Cash. This multi-chain laundering pipeline – moving from BNB Chain minting to cross-chain bridging and ending in privacy mixers – highlights the persistent vulnerabilities in cross-chain DeFi ecosystems.
The incident raises serious questions about the security of TesseraDAO's smart contracts. Neither the project's developers nor security researchers have disclosed the exact vulnerability that allowed the unauthorized minting. It also remains unclear whether the project has any remaining treasury assets or if further smart contracts are at risk.
For DeFi traders, the event is a stark reminder of the risks inherent in low-liquidity governance tokens. When a smart contract allows arbitrary minting, the downside is absolute and instantaneous.
Market participants should monitor the official TesseraDAO communication channels for an official post-mortem and avoid attempting to buy the heavily discounted TSR token. With liquidity completely depleted and the contract compromised, any recovery is highly unlikely, and the token now represents a dead asset.
TesseraDAO Exploit Triggers 99% TSR Crash After $2.5M Minting Attack
PeckShield reported a security breach where 99 million TSR tokens were minted and sold, causing the token price to plunge 99%. The attacker exchanged the tokens for 2.5 million USDT and laundered funds via Ethereum and Tornado Cash.