PeckShield has identified a critical exploit in which a hacker minted 99 million TSR tokens and immediately converted them into approximately $2.5 million in USDT, representing a near-total devaluation of the newly created supply. The security firm flagged the suspicious activity on X (formerly Twitter), indicating coordinated minting and liquidation consistent with a contract vulnerability or unauthorized access.
The timing of the mint-to-sale cycle suggests either a protocol flaw allowing unrestricted token generation or a compromised administrative key. The attacker's rapid conversion to stablecoin indicates sophistication and intent to exit liquidity before detection, a pattern common in smart contract exploits targeting decentralized exchanges or liquidity pools.
The incident underscores ongoing risks in token ecosystems with insufficient access controls or upgrade mechanisms. TSR holders face significant dilution from the 99 million token injection, with the project likely requiring emergency action to prevent further damage to token economics and holder confidence.