Harmony Blockchain Shuts Down After Token-Minting Breach, Migrates to Ethereum

Harmony Protocol has announced it is shutting down its own blockchain and migrating operations to Ethereum, citing concerns about state-sponsored threats and AI-driven exploits. The decision follows a security breach on August 11 in which attackers minted 3 trillion ONE tokens out of thin air, forcing the team to roll back the entire chain to reverse the damage. This came on top of a 2022 hack of Harmony's Horizon bridge that cost $100 million, one of the largest bridge exploits of that year. Confidence in the network has collapsed as a result, with total value locked falling from over $1 billion at its peak to roughly $150,000 today.

The migration will use a snapshot of user balances, with matching token airdrops issued to the same wallet addresses on Ethereum. Tokens held directly in wallets should transfer smoothly, but funds sitting inside smart contracts will not migrate automatically. Affected users have only a three-day window to withdraw those funds before the transition closes, a tight timeframe that could catch some holders unprepared.

Existing Harmony validators are being encouraged to move into new roles within the project's next venture, which the team describes as a "remix economy for AI video" rather than a return to decentralised finance. This represents a significant shift in direction for the project following its security failures.