Polkadot's Ethereum token was exploited, minting 1 billion fake DOT and crashing its price.

A critical vulnerability in Polkadot's Ethereum-based token allowed an attacker to mint about one billion fake DOT tokens and immediately sell them, causing a sharp price drop. The exploit affected only the Ethereum representation of DOT, not the native Polkadot chain, highlighting risks in wrapped token security. The attacker gained roughly $237,000 before liquidity issues limited further profit. This incident exposes weaknesses in token bridge or minting controls and warns investors to be cautious with wrapped DOT on Ethereum until the flaw is fixed.