UPDATE: Polkadot Treasury loss clarified at $1.381M via XCM messaging flaw
CIE News ·
Update to Polkadot Treasury loses $1.38M in dotUSD smart contract exploit
Based on reporting by The Defiant; not yet independently confirmed.
Polkadot's $1.381 million Treasury loss stemmed from an XCM accounting mismatch rather than a smart-contract bug, with Parity Technologies confirming user funds were unaffected.
Polkadot’s Treasury lost $1.381 million due to a Cross-Chain Messaging system flaw rather than a smart-contract exploit, according to an incident report detailed by CryptoSlate. As previously reported, the treasury suffered losses linked to the newly launched dotUSD, but findings show an accounting mismatch in Polkadot Asset Hub distorted pool pricing after a June 25, 2026 fix missed the production release. Parity Technologies stated that user funds remained unaffected and a subsequent runtime upgrade corrected the supply accounting.
Key facts
- $1.381M lost by Treasury
- XCM accounting bug
- Polkadot Asset Hub
- User funds unaffected
Read the original at The Defiant