# Polkadot Treasury Lost an Estimated $1.381 Million in DOT Value By Simon Yoon Canonical URL: https://www.tokenpost.com/news/technology/48577 Published: 2026-11-04T15:08:33.000Z Updated: 2026-11-04T15:08:33.000Z Section: Technology > A flaw in Asset Hub’s cross-chain messaging system distorted a Treasury-funded trading pool. A June fix missed production, and an October upgrade corrected dotUSD’s recorded supply. The Polkadot Treasury absorbed an estimated $1.381 million loss in Polkadot (DOT) value after an October exploit distorted pricing in a Treasury-funded trading pool. Parity Technologies disclosed Nov. 2 that a June security fix had not reached the production systems the exploit affected. The attacker exploited a flaw in Asset Hub’s cross-chain messaging system from Oct. 24 to 26, repeatedly lowering dotUSD’s recorded supply without changing account balances. The mismatch disrupted pricing in a DOT/dotUSD pool, where the Treasury was the only liquidity provider. Traders were able to exchange dotUSD for DOT at an artificial rate, reducing the Treasury’s position. The vulnerability surfaced in June and was initially classified as medium severity. Developers merged a fix June 25, but it missed a release cutoff and never reached the affected production runtimes. Parity reclassified the flaw as critical after the incident. Snowfork halted its own relayers Oct. 24. An independent relayer was used to resume the activity Oct. 26, about six hours before runtime 2.5.1 fixed the flaw on-chain. Runtime 2.5.2 then corrected the supply record Oct. 30. Before that correction, recorded issuance was about 4.06 million dotUSD below existing balances; the upgrade recalculated issuance without changing individual balances. “No users lost any funds,” Parity said. The company added that the incident had real consequences for the Treasury and that it took them seriously. An [earlier account of the dotUSD supply discrepancy and preliminary Treasury-loss estimate]() put the loss at $1.3 million; the later estimate adds precision and does not represent a separate loss. Polkadot governance approved dotUSD as a protocol-owned stablecoin and funded the pool. The initial design lets users mint and redeem dotUSD against Tether (USDT), with DOT-backed issuance planned for a later phase. Parity said it would check that fixes reach production runtimes and expand monitoring for unusual changes in asset supply. ## Links in this article - [earlier account of the dotUSD supply discrepancy and preliminary Treasury-loss estimate](https://www.tokenpost.com/news/technology/42499)