Definition ∞ Token withdrawal without deposit refers to an unauthorized or erroneous transaction where digital tokens are removed from a system without a corresponding prior deposit. This scenario typically indicates a severe vulnerability or exploit within a smart contract, exchange, or bridging protocol, allowing an attacker to mint or withdraw tokens illicitly. Such an event results in a net loss for the system, often leading to a significant devaluation of the affected token. It represents a critical security failure that directly impacts the integrity of the asset supply.
Context ∞ Token withdrawal without deposit incidents are among the most severe security breaches in the digital asset world, frequently leading to catastrophic financial losses and loss of trust. News reports on these events often detail the technical specifics of the exploit and the subsequent market impact. Preventing such occurrences requires rigorous smart contract auditing, robust security testing, and continuous monitoring of protocol behavior.
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