TSD (True Seigniorage Dollar) Hack

TOTAL LOST $7.1M
Medium Malicious Proposal bsc

Summarize with AI

ChatGPT Perplexity Claude Grok
Affected Chain bsc Incident surface
Recovered - No recovery reported
All-Time Rank #426 By amount stolen
Year 2021 Incident year

Incident Report

Protocol / Project TSD (True Seigniorage Dollar)
Date of Incident
Affected Chain(s) bsc
Attack Technique Malicious Proposal
Classification Governance

What the Attacker Needed to Succeed

Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.

Technical Knowledge Deep understanding of malicious proposal and Solidity and EVM internals
Capital Required Seed capital to cover gas and initial position setup
On-Chain Access Ability to interact with bsc smart contracts and deploy a custom exploit contract
Protocol Analysis Identification of the exploitable vulnerability in TSD (True Seigniorage Dollar)'s contract logic - root cause: governance
Execution Speed Precise transaction ordering and timing to exploit the vulnerability within a single atomic block
Obfuscation Plan A strategy to launder and move stolen funds - typically through mixers, cross-chain bridges, or decentralized DEX swaps to resist tracing

What Auditors Should Check

Could this have been caught in audit? Likely, with a thorough Malicious Proposal audit checklist and test coverage

If you're auditing a protocol with similar architecture to TSD (True Seigniorage Dollar), these are the critical security checks that could have prevented this incident (March 2021).

  • Verify all logic paths related to Malicious Proposal are guarded by proper access controls and input validation
  • Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs

Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.

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