Polkadot faces price decline and security breach in Fearless Wallet

Polkadot (DOT) is experiencing significant market volatility and security concerns. The token's price has seen a sharp decline, dropping approximately 4% to 10% in recent sessions, testing the critical $1.00 support level. This downward trend follows a failed recovery attempt where the price reached $1.20 before retreating.

Simultaneously, the Polkadot Community Foundation has issued a warning regarding a long-term security breach involving the third-party Fearless Wallet browser extension. An investigation by the Polkadot Technical Fellowship revealed that malicious code had been leaking users' private keys, recovery phrases, and keystore files to an external server since February 2025. Affected versions include 3.0.1 and 3.0.3 through 3.0.5.

At least eight users have reported unauthorized transactions totaling 17,286 DOT. The breach has sparked debate regarding a July network upgrade that reduced the staking unbonding period from 28 days to approximately 1–2 days. While the change increased liquidity, it also shortened the window available for users to react to compromised credentials before assets are transferred.