Security researchers reported that the TSR token of Tessera DAO on BNB Chain experienced anomalous minting followed by a concentrated sell-off, causing its price to drop by approximately 99%. On-chain data shows that the attacker minted 99 million TSR tokens and swiftly sold them, sparking concerns among the community regarding the project’s minting permissions and contract controls.
99 million TSR tokens were anomalously minted
Public information shows that these anomalously generated tokens were subsequently exchanged for approximately $2.5 million in USDT. The large-scale sell pressure rapidly impacted market liquidity, causing the TSR price to quickly decline.
Such incidents typically indicate potential gaps in token issuance or permission management. Based on the information disclosed so far, the focus is on whether minting controls were bypassed or whether related permissions were misused.
Funds transferred to Ethereum and entered into a mixer
Researchers stated that the related funds have been transferred from BNB Chain to Ethereum after conversion. On-chain data further shows that 1,285.5 ETH have already been moved through Tornado Cash.
Since mixers obscure fund pathways, they increase the difficulty of subsequent tracking and draw greater attention to the flow of remaining assets. Currently, external focus is on confirming the scale of untransferred funds and determining whether additional associated addresses can still be identified.
The project team may investigate minting permissions.
Based on current information, the subsequent investigation may focus on two areas: tracing the remaining funds and identifying the root cause of the vulnerability. If the issue is indeed due to minting permissions or contract design, the project team must also assess whether additional risks exist.
This incident once again demonstrates that when token issuance permissions lack adequate restrictions, attackers can directly create selling pressure through abnormal minting, cash out, and transfer across chains in a short period of time.