SWEAT Protocol Restores Balances After Exploit Drains 13.7 Billion Tokens

TLDR

• SWEAT said all external account balances have been restored.
• The attacker controlled about 13.71 billion SWEAT tokens.
• Blockaid estimated the stolen tokens were worth about $3.5 million.
• MEXC froze the attacker’s account during the response.
• Rhea Finance paused SWEAT trading to help contain the exploit.

SWEAT protocol said user balances have been restored after an attacker exploited a vulnerability in its token contract and temporarily gained control of about 13.71 billion SWEAT tokens.

According to reports, the exploit occurred on Wednesday and affected the Near-based SWEAT token contract. Security firm Blockaid estimated the attacker controlled about 65% of the total token supply at one point, worth roughly $3.5 million at the time.

The SWEAT team paused the token contract shortly after detecting the attack and coordinated with crypto exchange MEXC and Near-based liquidity provider Rhea Finance to limit losses. The project later said all external account balances had been fully restored and operations had returned to normal.

SWEAT Exploit Targets Top Token Holders

The attack began around 13:36 UTC, when the attacker used a contract vulnerability to drain funds from top SWEAT holder accounts. Blockaid said multiple Sweat Foundation-linked accounts were emptied within about 30 seconds.

SWEAT, also known as Sweat Economy, is a move-to-earn project built on the Near blockchain. The application rewards users with tokens for walking and other activity tied to its fitness-based ecosystem.

The exploit did not remain active for long. The protocol team responded by pausing the token contract, preventing additional movement while the incident was contained.

At the peak of the attack, the attacker controlled a large portion of circulating SWEAT supply. However, the team’s response limited the attacker’s ability to liquidate the tokens across available venues.

MEXC and Rhea Finance Help Contain Losses

SWEAT contacted MEXC after the attacker attempted to use the exchange to move or sell funds. MEXC froze the attacker’s account, helping prevent further liquidation.

Rhea Finance also paused SWEAT trading on its Near-based liquidity platform. The action reduced the attacker’s ability to swap stolen tokens through on-chain liquidity pools.

The coordination between the SWEAT team, exchange operators, and Near ecosystem participants helped contain the incident before it resulted in larger user losses.

SWEAT thanked MEXC and Rhea Finance for their role in the response. The project also acknowledged community support during the incident.

Team Plans Forensic Review and Law Enforcement Report

SWEAT said it plans to file an incident report with relevant law enforcement agencies. The team also said it will conduct a more detailed forensic review and release a post-mortem explaining how the exploit occurred.

The incident comes during a period of heightened security pressure across decentralized finance. Recent large exploits, including attacks affecting Drift and Kelp DAO, have renewed focus on protocol risk, emergency controls, and cross-industry coordination.

Unlike larger attacks where funds remain unrecovered, the SWEAT incident ended with user balances restored and normal operations resumed. The case shows how fast contract pauses, exchange freezes, and liquidity-provider action can reduce losses when teams respond quickly.

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