The $TOP token has been targeted in a governance attack, leading to losses of approximately $1.59 million. The attacker exploited the token's low market capitalization to gain over 50% of the voting power at a minimal cost. This enabled them to pass a malicious proposal to mint a large quantity of $TOP tokens, which were then exchanged for WETH through the Balancer liquidity pool, significantly depleting its liquidity.
Security firm BlockSec Phalcon has highlighted the incident, advising projects with similar governance structures to review their security measures. Key areas for review include voting power distribution, quorum and approval thresholds, and minting permissions to prevent such vulnerabilities.
$TOP Token Governance Attack Results in $1.59 Million Loss
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