From 5850bcec451ab6491b488a379a9ae14d7963de12 Mon Sep 17 00:00:00 2001
From: Max <maxim@injectivelabs.org>
Date: Thu, 6 Aug 2026 00:12:08 +0400
Subject: [PATCH 1/2] fix: expose MTS bank hook suppression

Keep seize as a direct BANK.transfer after validateSeize. Expose the transient suppression state so Injective Core can read in-flight contract storage before entering the matching permissions hooks.

The getter does not alter transfer semantics or storage layout; ordinary EVM and Cosmos transfers continue through compliance.
---
 contracts/token/DSTokenMTS.sol | 4 ++++
 1 file changed, 4 insertions(+)

diff --git a/contracts/token/DSTokenMTS.sol b/contracts/token/DSTokenMTS.sol
index d6482c8..dc19646 100644
--- a/contracts/token/DSTokenMTS.sol
+++ b/contracts/token/DSTokenMTS.sol
@@ -172,6 +172,10 @@ contract DSTokenMTS is DSToken {
         return code != 0;
     }
 
+    function isBankTransferHookSuppressed() external view returns (bool) {
+        return suppressPostTransferRecord;
+    }
+
     function postTransfer(
         address _from,
         address _to,

From 1efa06a5aa0022014ef40ef40090adb1b29c2224 Mon Sep 17 00:00:00 2001
From: Max <maxim@injectivelabs.org>
Date: Thu, 6 Aug 2026 00:12:27 +0400
Subject: [PATCH 2/2] test: cover direct-transfer MTS seize flow

Extend the real-node Hardhat acceptance test with a restricted issuer wallet. Confirm ordinary EVM and Cosmos transfers remain rejected, then verify partial and full seize operations preserve supply, balances, wallet tracking, and investor counters.
---
 test/dstoken-injective-mts.test.ts | 28 +++++++++++++++++++++++++++-
 1 file changed, 27 insertions(+), 1 deletion(-)

diff --git a/test/dstoken-injective-mts.test.ts b/test/dstoken-injective-mts.test.ts
index 70e5cf1..b88910d 100644
--- a/test/dstoken-injective-mts.test.ts
+++ b/test/dstoken-injective-mts.test.ts
@@ -191,7 +191,7 @@ describeInjective('DS Token Injective MTS integration', function() {
   it('uses the Bank precompile and permissions hooks for regulated transfers', async function() {
     assertInjectivedKeys();
 
-    const [owner, holder, blocked] = await hre.ethers.getSigners();
+    const [owner, holder, blocked, issuerWallet] = await hre.ethers.getSigners();
 
     const contracts = await hre.run('deploy-all', {
       name: 'Token Example 1',
@@ -204,6 +204,7 @@ describeInjective('DS Token Injective MTS integration', function() {
     const registryService = contracts.registryService;
     const complianceService = contracts.complianceService;
     const complianceConfigurationService = contracts.complianceConfigurationService;
+    const walletManager = contracts.walletManager;
     const tokenAddress = await dsToken.getAddress();
     const denom = `erc20:${tokenAddress}`;
 
@@ -256,5 +257,30 @@ describeInjective('DS Token Injective MTS integration', function() {
 
     expect(await dsToken.balanceOf(holder.address)).to.equal(375);
     expect(await dsToken.balanceOf(blocked.address)).to.equal(0);
+
+    await (await walletManager.addIssuerWallet(issuerWallet.address)).wait();
+
+    await expect(dsToken.connect(holder).transfer(issuerWallet.address, 1)).to.be.reverted;
+    expect(() => bankSend('user1', injAddressFromEth(issuerWallet.address), denom, 1n)).to.throw(/transfer is restricted by EVM hook/i);
+
+    await (await dsToken.seize(holder.address, issuerWallet.address, 100, 'test partial seize')).wait();
+
+    expect(await dsToken.totalSupply()).to.equal(500);
+    expect(await dsToken.balanceOf(holder.address)).to.equal(275);
+    expect(await dsToken.balanceOf(issuerWallet.address)).to.equal(100);
+    expect(await dsToken.balanceOfInvestor(INVESTORS.INVESTOR_ID.INVESTOR_ID_1)).to.equal(275);
+    expect(await dsToken.walletCount()).to.equal(3);
+    expect(await complianceService.getTotalInvestorsCount()).to.equal(2);
+
+    await (await dsToken.seize(holder.address, issuerWallet.address, 275, 'test full seize')).wait();
+
+    expect(await dsToken.totalSupply()).to.equal(500);
+    expect(await dsToken.balanceOf(holder.address)).to.equal(0);
+    expect(await dsToken.balanceOf(owner.address)).to.equal(125);
+    expect(await dsToken.balanceOf(issuerWallet.address)).to.equal(375);
+    expect(await dsToken.balanceOfInvestor(INVESTORS.INVESTOR_ID.INVESTOR_ID_1)).to.equal(0);
+    expect(await dsToken.balanceOfInvestor(INVESTORS.INVESTOR_ID.INVESTOR_ID_2)).to.equal(125);
+    expect(await dsToken.walletCount()).to.equal(2);
+    expect(await complianceService.getTotalInvestorsCount()).to.equal(1);
   });
 });