Attackers exploited the X100 governance system to drain treasury tokens and liquidity, cashing out approximately $4.85 million in USDT. The exploit was executed by securing two of three Senate seats in each transaction, allowing malicious actors to pass governance proposals that authorized the fund transfers. Blockchain security firm Blockaid detected and warned about the ongoing attack at 10:49 a.m. ET, alerting the community as the treasury drainage unfolded in real time.