security(p2p): fix withdrawal BOLA, financial RLS exposure, admin dispute escrow

Critical/high audit remediation on the custodial P2P ledger. Auth model is wallet-based; identity (citizen/visa) is cryptographically bound to a wallet (People Chain tiki.citizenNft / active p2p_visa), which enables a correct fix. - Withdrawal BOLA (CRITICAL): process-withdraw now requires a wallet-SIGNED challenge; server verifies signature (raw + <Bytes> forms), asserts the signer OWNS the identity, consumes a single-use nonce (replay), and derives user_id server-side — the client-supplied user_id is ignored. process-withdrawal (batch) now requires the service-role key (was: any bearer, incl. public anon key). request_withdraw is REVOKEd from anon/authenticated + service-role guarded. - Financial RLS (HIGH): drop the blanket USING(true) SELECT on user_internal_balances, p2p_balance_transactions, p2p_deposit_withdraw_requests; lock p2p_user_payment_methods (IBAN PII) + p2p_fiat_disputes UPDATE to service_role; legitimate reads move behind scoped SECURITY DEFINER RPCs. - Deposit integrity: verify-deposit now binds the on-chain sender to identity ownership before crediting. - Admin dispute (CRITICAL fund-logic): DisputeResolutionPanel relabeled trades without moving escrow. New admin-signed resolve-dispute function + admin_resolve_dispute RPC moves escrow (release/refund/split) atomically with correct accounting (avoids the double-count in the legacy resolve_p2p_dispute). Client isAdmin documented as cosmetic. DEPLOY RUNBOOK (gated; owner runs): 1) apply migrations 20260225/20260725* in order; 2) deploy edge functions process-withdraw, process-withdrawal, verify-deposit, resolve-dispute; 3) set edge secrets PEOPLE_RPC_ENDPOINT (+ optional ADMIN_WALLETS); 4) ship frontend. Migrations + functions + frontend must go together or the app breaks. KNOWN RESIDUAL (Round 2 — as severe as the withdrawal BOLA): release_/lock_/refund_ escrow_internal still have PUBLIC EXECUTE and the client calls release_escrow_internal directly with the anon key from confirmPaymentReceived -> an anon caller can drain any victim's LOCKED balance. Fix = a wallet-signed confirm-payment edge function (same pattern as withdrawals) before revoking PUBLIC execute. Not yet fixed.
2026-07-26 08:35:41 +00:00 · 2026-07-25 00:09:03 -07:00
parent 27b4057bd4
commit a8f41cd47f
13 changed files with 1178 additions and 96 deletions
@@ -1023,18 +1023,53 @@ export async function getInternalBalance(userId: string, token: CryptoToken): Pr
 }

 /**
- * Request a withdrawal from internal balance to external wallet
- * Calls the process-withdraw edge function which handles the full flow:
- * limit check → lock balance → blockchain TX → complete withdrawal
+ * Canonical withdrawal challenge string. MUST be byte-identical to the server's
+ * buildWithdrawChallenge (web/supabase/functions/_shared/identity-auth.ts).
+ */
+export function buildWithdrawChallenge(p: {
+  identityId: string;
+  token: string;
+  amount: number;
+  destination: string;
+  signerAddress: string;
+  timestamp: number;
+  nonce: string;
+}): string {
+  return [
+    'Pezkuwi P2P Withdrawal',
+    `identity:${p.identityId}`,
+    `token:${p.token}`,
+    `amount:${p.amount}`,
+    `destination:${p.destination}`,
+    `signer:${p.signerAddress}`,
+    `timestamp:${p.timestamp}`,
+    `nonce:${p.nonce}`,
+  ].join('\n');
+}
+
+/**
+ * Request a withdrawal from internal balance to external wallet.
+ *
+ * AUTHORIZATION: the caller must prove ownership of the P2P identity by signing
+ * a challenge with the wallet that owns it (citizen NFT / visa). The edge
+ * function derives the user_id server-side from `identityId` after verifying the
+ * signature and identity ownership — a client-supplied user_id is never trusted.
+ *
+ * @param identityId    Citizen number (#42-<item>-<6d>) or visa number (V-XXXXXX)
+ * @param signerAddress The connected wallet (must own the identity)
+ * @param signMessage   Signs a message with the connected wallet (signRaw)
 */
 export async function requestWithdraw(
-  userId: string,
+  identityId: string,
  token: CryptoToken,
  amount: number,
-  walletAddress: string
+  walletAddress: string,
+  signerAddress: string,
+  signMessage: (message: string) => Promise<string>
 ): Promise<string> {
  try {
-    if (!userId) throw new Error('Identity required for P2P trading');
+    if (!identityId) throw new Error('Identity required for P2P trading');
+    if (!signerAddress) throw new Error('Connect a wallet to withdraw');

    // Validate amount
    if (amount <= 0) throw new Error('Amount must be greater than 0');
@@ -1044,10 +1079,26 @@ export async function requestWithdraw(
      throw new Error('Invalid wallet address');
    }

+    // Build + sign the authorization challenge binding the full withdrawal intent.
+    const timestamp = Date.now();
+    const nonce = `wd-${timestamp}-${Math.random().toString(36).slice(2)}-${Math.random().toString(36).slice(2)}`;
+    const challenge = buildWithdrawChallenge({
+      identityId,
+      token,
+      amount,
+      destination: walletAddress,
+      signerAddress,
+      timestamp,
+      nonce,
+    });
+
+    toast.info('Sign the request in your wallet to authorize the withdrawal...');
+    const signature = await signMessage(challenge);
+
    toast.info('Processing withdrawal...');

    const { data, error, response } = await supabase.functions.invoke('process-withdraw', {
-      body: { userId, token, amount, walletAddress }
+      body: { identityId, token, amount, walletAddress, signerAddress, signature, timestamp, nonce }
    });

    // Supabase client wraps non-2xx as generic FunctionsHttpError (data=null).
@@ -1085,15 +1136,14 @@ export async function getDepositWithdrawHistory(userId: string): Promise<Deposit
  try {
    if (!userId) throw new Error('Identity required for P2P trading');

-    const { data, error } = await supabase
-      .from('p2p_deposit_withdraw_requests')
-      .select('*')
-      .eq('user_id', userId)
-      .order('created_at', { ascending: false })
-      .limit(50);
+    // Scoped SECURITY DEFINER RPC (direct table SELECT is no longer world-open).
+    const { data, error } = await supabase.rpc('get_user_deposit_withdraw_requests', {
+      p_user_id: userId,
+      p_limit: 50,
+    });

    if (error) throw error;
-    return data || [];
+    return (data as DepositWithdrawRequest[]) || [];
  } catch (error) {
    console.error('Get deposit/withdraw history error:', error);
    return [];
@@ -1103,16 +1153,19 @@ export async function getDepositWithdrawHistory(userId: string): Promise<Deposit
 /**
 * Get user's balance transaction history
 */
-export async function getBalanceTransactionHistory(limit: number = 50): Promise<BalanceTransaction[]> {
+export async function getBalanceTransactionHistory(userId: string, limit: number = 50): Promise<BalanceTransaction[]> {
  try {
-    const { data, error } = await supabase
-      .from('p2p_balance_transactions')
-      .select('*')
-      .order('created_at', { ascending: false })
-      .limit(limit);
+    if (!userId) throw new Error('Identity required for P2P trading');
+
+    // Scoped SECURITY DEFINER RPC — returns only this user's ledger rows
+    // (the previous unfiltered SELECT * exposed every user's transactions).
+    const { data, error } = await supabase.rpc('get_user_balance_transactions', {
+      p_user_id: userId,
+      p_limit: limit,
+    });

    if (error) throw error;
-    return data || [];
+    return (data as BalanceTransaction[]) || [];
  } catch (error) {
    console.error('Get balance transaction history error:', error);
    return [];
@@ -151,6 +151,12 @@ export const ProtectedRoute: React.FC<ProtectedRouteProps> = ({
    return <Navigate to="/login" replace />;
  }

+  // NOTE: `isAdmin` here is a COSMETIC UX gate only (derived from a localStorage
+  // wallet and forgeable in DevTools). It prevents casual access to the admin UI
+  // but is NOT a security boundary. All privileged operations behind this route
+  // (e.g. dispute resolution) independently verify admin authority server-side
+  // via a wallet signature (resolve-dispute edge function). Never rely on this
+  // check alone to protect funds or state.
  if (requireAdmin && !isAdmin) {
    return (
      <div className="min-h-screen flex items-center justify-center bg-gray-900">
@@ -1,6 +1,8 @@
 import { useState, useEffect } from 'react';
 import { useTranslation } from 'react-i18next';
 import { supabase } from '@/lib/supabase';
+import { usePezkuwi } from '@/contexts/PezkuwiContext';
+import { useWallet } from '@/contexts/WalletContext';
 import { Card, CardContent } from '@/components/ui/card';
 import { Button } from '@/components/ui/button';
 import { Badge } from '@/components/ui/badge';
@@ -111,8 +113,35 @@ const CATEGORY_KEYS: Record<string, string> = {
  other: 'dispute.categoryOther'
 };

+/**
+ * Canonical admin-action challenge. MUST be byte-identical to the server
+ * buildAdminChallenge (web/supabase/functions/_shared/identity-auth.ts).
+ */
+function buildAdminChallenge(p: {
+  action: string;
+  disputeId: string;
+  tradeId: string;
+  decision: string;
+  adminAddress: string;
+  timestamp: number;
+  nonce: string;
+}): string {
+  return [
+    'Pezkuwi P2P Admin Action',
+    `action:${p.action}`,
+    `dispute:${p.disputeId}`,
+    `trade:${p.tradeId}`,
+    `decision:${p.decision}`,
+    `admin:${p.adminAddress}`,
+    `timestamp:${p.timestamp}`,
+    `nonce:${p.nonce}`,
+  ].join('\n');
+}
+
 export function DisputeResolutionPanel() {
  const { t } = useTranslation();
+  const { selectedAccount } = usePezkuwi();
+  const { signMessage } = useWallet();
  const [disputes, setDisputes] = useState<Dispute[]>([]);
  const [loading, setLoading] = useState(true);
  const [selectedDispute, setSelectedDispute] = useState<Dispute | null>(null);
@@ -202,28 +231,46 @@ export function DisputeResolutionPanel() {
    return true;
  });

-  // Claim dispute for review
-  const claimDispute = async (disputeId: string) => {
+  // Sign an admin-action challenge with the connected wallet. The server
+  // (resolve-dispute edge function) verifies the signature AND that the wallet
+  // is in the admin set — this is the real authorization, not the client flag.
+  const signAdminAction = async (
+    action: 'claim' | 'resolve',
+    disputeId: string,
+    tradeId: string,
+    decision: string
+  ) => {
+    if (!selectedAccount?.address) throw new Error('Connect an admin wallet');
+    const timestamp = Date.now();
+    const nonce = `adm-${timestamp}-${Math.random().toString(36).slice(2)}-${Math.random().toString(36).slice(2)}`;
+    const challenge = buildAdminChallenge({
+      action,
+      disputeId,
+      tradeId,
+      decision,
+      adminAddress: selectedAccount.address,
+      timestamp,
+      nonce,
+    });
+    const signature = await signMessage(challenge);
+    return { adminAddress: selectedAccount.address, signature, timestamp, nonce };
+  };
+
+  // Claim dispute for review (server-verified admin action)
+  const claimDispute = async (disputeId: string, tradeId: string) => {
    try {
-      const { data: { user } } = await supabase.auth.getUser();
-      if (!user) throw new Error('Not authenticated');
-
-      const { error } = await supabase
-        .from('p2p_fiat_disputes')
-        .update({
-          status: 'under_review',
-          assigned_moderator_id: user.id,
-          assigned_at: new Date().toISOString()
-        })
-        .eq('id', disputeId);
-
-      if (error) throw error;
+      toast.info(t('dispute.claimSignPrompt', 'Sign to claim this dispute...'));
+      const auth = await signAdminAction('claim', disputeId, tradeId, '');
+      const { data, error } = await supabase.functions.invoke('resolve-dispute', {
+        body: { action: 'claim', disputeId, tradeId, ...auth },
+      });
+      if (error || !data?.success) throw new Error(data?.error || error?.message || 'Claim failed');

      toast.success(t('dispute.claimedToast'));
      fetchDisputes();
    } catch (error) {
      console.error('Error claiming dispute:', error);
-      toast.error(t('dispute.claimFailed'));
+      toast.error(error instanceof Error ? error.message : t('dispute.claimFailed'));
    }
  };

@@ -236,52 +283,26 @@ export function DisputeResolutionPanel() {

    setSubmitting(true);
    try {
-      const { data: { user } } = await supabase.auth.getUser();
-      if (!user) throw new Error('Not authenticated');
+      // Server-verified admin action. The edge function verifies the admin
+      // signature, then atomically MOVES ESCROW (release/refund/split) and
+      // updates trade + dispute status in one transaction. The client no longer
+      // relabels rows directly (which previously moved no funds).
+      toast.info(t('dispute.resolveSignPrompt', 'Sign to authorize the resolution...'));
+      const auth = await signAdminAction('resolve', selectedDispute.id, selectedDispute.trade_id, decision);

-      // Update dispute
-      const { error: disputeError } = await supabase
-        .from('p2p_fiat_disputes')
-        .update({
-          status: decision === 'escalate' ? 'escalated' : 'resolved',
+      const { data, error } = await supabase.functions.invoke('resolve-dispute', {
+        body: {
+          action: 'resolve',
+          disputeId: selectedDispute.id,
+          tradeId: selectedDispute.trade_id,
          decision,
-          decision_reasoning: reasoning,
-          resolved_at: new Date().toISOString()
-        })
-        .eq('id', selectedDispute.id);
+          reasoning,
+          ...auth,
+        },
+      });

-      if (disputeError) throw disputeError;
-
-      // Update trade status based on decision
-      if (decision !== 'escalate' && selectedDispute.trade) {
-        const tradeStatus = decision === 'release_to_buyer' ? 'completed' : 'refunded';
-        await supabase
-          .from('p2p_fiat_trades')
-          .update({ status: tradeStatus })
-          .eq('id', selectedDispute.trade_id);
-      }
-
-      // Create notifications for both parties
-      if (selectedDispute.trade) {
-        const notificationPromises = [
-          supabase.rpc('create_p2p_notification', {
-            p_user_id: selectedDispute.trade.seller_id,
-            p_type: 'dispute_resolved',
-            p_title: 'Dispute Resolved',
-            p_message: `The dispute has been resolved: ${t(DECISION_OPTION_KEYS.find(o => o.value === decision)?.labelKey || '')}`,
-            p_reference_type: 'dispute',
-            p_reference_id: selectedDispute.id
-          }),
-          supabase.rpc('create_p2p_notification', {
-            p_user_id: selectedDispute.trade.buyer_id,
-            p_type: 'dispute_resolved',
-            p_title: 'Dispute Resolved',
-            p_message: `The dispute has been resolved: ${t(DECISION_OPTION_KEYS.find(o => o.value === decision)?.labelKey || '')}`,
-            p_reference_type: 'dispute',
-            p_reference_id: selectedDispute.id
-          })
-        ];
-        await Promise.all(notificationPromises);
+      if (error || !data?.success) {
+        throw new Error(data?.error || error?.message || 'Resolution failed');
      }

      toast.success(t('dispute.resolvedToast'));
@@ -292,7 +313,7 @@ export function DisputeResolutionPanel() {
      fetchDisputes();
    } catch (error) {
      console.error('Error resolving dispute:', error);
-      toast.error(t('dispute.resolveFailed'));
+      toast.error(error instanceof Error ? error.message : t('dispute.resolveFailed'));
    } finally {
      setSubmitting(false);
    }
@@ -475,7 +496,7 @@ export function DisputeResolutionPanel() {
                        {dispute.status === 'open' && (
                          <Button
                            size="sm"
-                            onClick={() => claimDispute(dispute.id)}
+                            onClick={() => claimDispute(dispute.id, dispute.trade_id)}
                          >
                            {t('dispute.claim')}
                          </Button>
@@ -30,6 +30,7 @@ import {
  Info
 } from 'lucide-react';
 import { usePezkuwi } from '@/contexts/PezkuwiContext';
+import { useWallet } from '@/contexts/WalletContext';
 import { useP2PIdentity } from '@/contexts/P2PIdentityContext';
 import { toast } from 'sonner';
 import {
@@ -52,7 +53,8 @@ type WithdrawStep = 'form' | 'confirm' | 'success';
 export function WithdrawModal({ isOpen, onClose, onSuccess }: WithdrawModalProps) {
  const { t } = useTranslation();
  const { selectedAccount } = usePezkuwi();
-  const { userId } = useP2PIdentity();
+  const { signMessage } = useWallet();
+  const { userId, identityId } = useP2PIdentity();

  const [step, setStep] = useState<WithdrawStep>('form');
  const [token, setToken] = useState<CryptoToken>('HEZ');
@@ -177,8 +179,18 @@ export function WithdrawModal({ isOpen, onClose, onSuccess }: WithdrawModalProps

    try {
      const withdrawAmount = parseFloat(amount);
-      if (!userId) throw new Error('Identity required');
-      const id = await requestWithdraw(userId, token, withdrawAmount, walletAddress);
+      if (!identityId) throw new Error('Identity required');
+      if (!selectedAccount?.address) throw new Error('Connect a wallet to withdraw');
+      // Authorization: sign a challenge with the wallet that owns the identity.
+      // The edge function derives user_id from identityId after verifying this.
+      const id = await requestWithdraw(
+        identityId,
+        token,
+        withdrawAmount,
+        walletAddress,
+        selectedAccount.address,
+        signMessage
+      );
      setRequestId(id);
      setStep('success');
      onSuccess?.();
@@ -115,6 +115,17 @@ export const AuthProvider: React.FC<{ children: React.ReactNode }> = ({ children


  const checkAdminStatus = useCallback(async () => {
+    // ============================================================
+    // COSMETIC ONLY — NOT an authorization boundary.
+    // ------------------------------------------------------------
+    // This flag is derived from a localStorage wallet value and can be trivially
+    // forged in DevTools. It ONLY controls whether admin UI is shown. Every
+    // privileged operation MUST be verified server-side:
+    //   - Dispute claim/resolve -> `resolve-dispute` edge function verifies a
+    //     wallet SIGNATURE against the server-side admin wallet set before doing
+    //     anything (see supabase/functions/resolve-dispute + _shared/identity-auth).
+    // Do NOT add fund-moving or state-changing logic gated solely on isAdmin.
+    // ============================================================
    // Admin wallet whitelist (blockchain-based auth)
    const ADMIN_WALLETS = [
      '5CyuFfbF95rzBxru7c9yEsX4XmQXUxpLUcbj9RLg9K1cGiiF', // Founder
@@ -0,0 +1,283 @@
+// _shared/identity-auth.ts
+//
+// Server-side identity + wallet-signature authorization for fund-moving edge
+// functions (withdrawals, deposits). This is the security boundary that binds
+// an incoming request to a real, cryptographically-proven principal:
+//
+//   1. The caller signs a canonical challenge with their Substrate wallet.
+//   2. We verify that signature server-side (sr25519/ed25519) -> proves control
+//      of `signerAddress`.
+//   3. We prove `signerAddress` OWNS the claimed identity (citizen number / visa):
+//        - citizen  -> People Chain `tiki.citizenNft(signerAddress)` + the
+//          deterministic 6-digit derivation must match the claimed number.
+//        - visa     -> `p2p_visa` row (wallet_address == signerAddress, active).
+//   4. Only then do we derive `userId = identityToUUID(identityId)` SERVER-SIDE.
+//
+// The client-supplied `userId` is NEVER trusted for authorization. Every
+// caller can only ever act on the balance of the identity their wallet owns.
+
+import { signatureVerify, cryptoWaitReady } from 'npm:@pezkuwi/util-crypto@14.0.25'
+import { stringToU8a, u8aWrapBytes } from 'npm:@pezkuwi/util@14.0.25'
+import type { ApiPromise } from 'npm:@pezkuwi/api@16.5.36'
+import type { SupabaseClient } from 'npm:@supabase/supabase-js@2'
+
+// Max age of a signed challenge (replay window). Nonce dedup (see caller)
+// provides exact-once semantics; this bounds how long a captured signature
+// could even be presented.
+export const CHALLENGE_MAX_AGE_MS = 5 * 60 * 1000 // 5 minutes
+
+// UUID v5 namespace (RFC 4122 DNS namespace) — MUST match shared/lib/identity.ts
+const UUID_V5_NAMESPACE = '6ba7b810-9dad-11d1-80b4-00c04fd430c8'
+
+/**
+ * Deterministic UUID v5 from a citizen/visa number. Identical algorithm to
+ * shared/lib/identity.ts (client) and verify-deposit — the value MUST match so
+ * balances resolve to the same row everywhere.
+ */
+export async function identityToUUID(identityId: string): Promise<string> {
+  const namespaceHex = UUID_V5_NAMESPACE.replace(/-/g, '')
+  const namespaceBytes = new Uint8Array(16)
+  for (let i = 0; i < 16; i++) {
+    namespaceBytes[i] = parseInt(namespaceHex.substr(i * 2, 2), 16)
+  }
+  const nameBytes = new TextEncoder().encode(identityId)
+  const combined = new Uint8Array(namespaceBytes.length + nameBytes.length)
+  combined.set(namespaceBytes)
+  combined.set(nameBytes, namespaceBytes.length)
+
+  const hashBuffer = await crypto.subtle.digest('SHA-1', combined)
+  const h = new Uint8Array(hashBuffer)
+  h[6] = (h[6] & 0x0f) | 0x50
+  h[8] = (h[8] & 0x3f) | 0x80
+  const hex = Array.from(h.slice(0, 16)).map(b => b.toString(16).padStart(2, '0')).join('')
+  return `${hex.slice(0, 8)}-${hex.slice(8, 12)}-${hex.slice(12, 16)}-${hex.slice(16, 20)}-${hex.slice(20, 32)}`
+}
+
+/**
+ * Deterministic 6-digit citizen number derivation. Identical algorithm to
+ * shared/lib/tiki.ts generateCitizenNumber — used to bind a citizen number to
+ * the wallet that owns the NFT.
+ */
+export function generateCitizenNumber(ownerAddress: string, collectionId: number, itemId: number): string {
+  let hash = 0
+  for (let i = 0; i < ownerAddress.length; i++) {
+    hash = ((hash << 5) - hash) + ownerAddress.charCodeAt(i)
+    hash = hash & hash
+  }
+  hash += collectionId * 1000 + itemId
+  hash = Math.abs(hash)
+  return (hash % 1000000).toString().padStart(6, '0')
+}
+
+/**
+ * Verify a wallet signature over `message`. Handles both the raw-bytes form and
+ * the `<Bytes>...</Bytes>` wrapped form that Polkadot-style extensions apply to
+ * signRaw payloads, so extension, WalletConnect and native signers all verify.
+ */
+export async function verifyWalletSignature(
+  message: string,
+  signature: string,
+  signerAddress: string
+): Promise<boolean> {
+  try {
+    await cryptoWaitReady()
+    const raw = stringToU8a(message)
+    const wrapped = u8aWrapBytes(message)
+    for (const candidate of [raw, wrapped]) {
+      const res = signatureVerify(candidate, signature, signerAddress)
+      if (res.isValid) return true
+    }
+    return false
+  } catch (_e) {
+    return false
+  }
+}
+
+/**
+ * Canonical challenge string for a withdrawal. MUST be byte-identical to what
+ * the client builds and signs (see shared/lib/p2p-fiat.ts buildWithdrawChallenge).
+ */
+export function buildWithdrawChallenge(p: {
+  identityId: string
+  token: string
+  amount: number
+  destination: string
+  signerAddress: string
+  timestamp: number
+  nonce: string
+}): string {
+  return [
+    'Pezkuwi P2P Withdrawal',
+    `identity:${p.identityId}`,
+    `token:${p.token}`,
+    `amount:${p.amount}`,
+    `destination:${p.destination}`,
+    `signer:${p.signerAddress}`,
+    `timestamp:${p.timestamp}`,
+    `nonce:${p.nonce}`,
+  ].join('\n')
+}
+
+/**
+ * Canonical challenge string for a deposit-credit. Binds the on-chain tx and the
+ * identity being credited to the wallet that signs.
+ */
+export function buildDepositChallenge(p: {
+  identityId: string
+  token: string
+  txHash: string
+  signerAddress: string
+  timestamp: number
+  nonce: string
+}): string {
+  return [
+    'Pezkuwi P2P Deposit',
+    `identity:${p.identityId}`,
+    `token:${p.token}`,
+    `tx:${p.txHash}`,
+    `signer:${p.signerAddress}`,
+    `timestamp:${p.timestamp}`,
+    `nonce:${p.nonce}`,
+  ].join('\n')
+}
+
+/**
+ * Canonical challenge string for a privileged admin action (dispute claim /
+ * resolve). MUST be byte-identical to the client (DisputeResolutionPanel).
+ */
+export function buildAdminChallenge(p: {
+  action: string
+  disputeId: string
+  tradeId: string
+  decision: string
+  adminAddress: string
+  timestamp: number
+  nonce: string
+}): string {
+  return [
+    'Pezkuwi P2P Admin Action',
+    `action:${p.action}`,
+    `dispute:${p.disputeId}`,
+    `trade:${p.tradeId}`,
+    `decision:${p.decision}`,
+    `admin:${p.adminAddress}`,
+    `timestamp:${p.timestamp}`,
+    `nonce:${p.nonce}`,
+  ].join('\n')
+}
+
+export interface OwnershipResult {
+  ok: boolean
+  error?: string
+  /** 'citizen' | 'visa' */
+  kind?: 'citizen' | 'visa'
+}
+
+/**
+ * Prove that `signerAddress` owns `identityId`.
+ *
+ * - Visa numbers ("V-XXXXXX"): must have an active p2p_visa row bound to the
+ *   signer's wallet_address.
+ * - Citizen numbers ("#42-<item>-<6digit>"): the People Chain must report that
+ *   signerAddress owns the citizen NFT with that item id, and the deterministic
+ *   6-digit derivation for (signerAddress, 42, itemId) must equal the claimed
+ *   6-digit — i.e. the number is cryptographically tied to the wallet.
+ *
+ * `peopleApi` may be lazily created by the caller; it is only required for
+ * citizen identities.
+ */
+export async function assertIdentityOwnedByWallet(
+  serviceClient: SupabaseClient,
+  identityId: string,
+  signerAddress: string,
+  getPeopleApi: () => Promise<ApiPromise>
+): Promise<OwnershipResult> {
+  if (!identityId || !signerAddress) {
+    return { ok: false, error: 'Missing identity or signer' }
+  }
+
+  // ---- Visa identity ----
+  if (identityId.startsWith('V-')) {
+    const { data: visa, error } = await serviceClient
+      .from('p2p_visa')
+      .select('visa_number, wallet_address, status')
+      .eq('visa_number', identityId)
+      .eq('wallet_address', signerAddress)
+      .eq('status', 'active')
+      .maybeSingle()
+
+    if (error) return { ok: false, error: 'Visa lookup failed' }
+    if (!visa) return { ok: false, error: 'Signing wallet does not own this visa identity' }
+    return { ok: true, kind: 'visa' }
+  }
+
+  // ---- Citizen identity: "#<collection>-<item>-<6digit>" ----
+  const clean = identityId.trim().replace('#', '')
+  const parts = clean.split('-')
+  if (parts.length !== 3) {
+    return { ok: false, error: 'Invalid citizen identity format' }
+  }
+  const collectionId = parseInt(parts[0], 10)
+  const itemId = parseInt(parts[1], 10)
+  const providedSixDigit = parts[2]
+  if (isNaN(collectionId) || isNaN(itemId) || providedSixDigit.length !== 6) {
+    return { ok: false, error: 'Invalid citizen identity format' }
+  }
+  if (collectionId !== 42) {
+    return { ok: false, error: 'Invalid citizen collection' }
+  }
+
+  let peopleApi: ApiPromise
+  try {
+    peopleApi = await getPeopleApi()
+  } catch (_e) {
+    return { ok: false, error: 'People Chain unavailable for identity verification' }
+  }
+
+  try {
+    if (!peopleApi.query?.tiki?.citizenNft) {
+      return { ok: false, error: 'Citizen NFT pallet unavailable' }
+    }
+    const res: any = await peopleApi.query.tiki.citizenNft(signerAddress)
+    if (res.isEmpty || (res.isSome === false && typeof res.isSome === 'boolean')) {
+      return { ok: false, error: 'Signing wallet owns no citizen NFT' }
+    }
+    const actualItemId = res.isSome ? res.unwrap().toNumber() : (typeof res.toNumber === 'function' ? res.toNumber() : null)
+    if (actualItemId === null || actualItemId !== itemId) {
+      return { ok: false, error: 'Citizen NFT does not match signing wallet' }
+    }
+    const expected = generateCitizenNumber(signerAddress, collectionId, itemId)
+    if (expected !== providedSixDigit) {
+      return { ok: false, error: 'Citizen number does not match signing wallet' }
+    }
+    return { ok: true, kind: 'citizen' }
+  } catch (_e) {
+    return { ok: false, error: 'Citizen identity verification failed' }
+  }
+}
+
+/**
+ * Atomically record a used challenge nonce for replay protection. Returns false
+ * if the nonce was already used (replay) — caller MUST reject in that case.
+ * Requires table public.p2p_challenge_nonces(nonce text primary key, ...).
+ */
+export async function consumeNonce(
+  serviceClient: SupabaseClient,
+  nonce: string,
+  purpose: string
+): Promise<boolean> {
+  if (!nonce || nonce.length < 8) return false
+  const { error } = await serviceClient
+    .from('p2p_challenge_nonces')
+    .insert({ nonce, purpose })
+  // Unique violation => already used => replay.
+  if (error) return false
+  return true
+}
+
+/** Basic timestamp freshness check for a signed challenge. */
+export function isFreshTimestamp(timestamp: number): boolean {
+  if (!Number.isFinite(timestamp)) return false
+  const age = Date.now() - timestamp
+  return age >= -60_000 && age <= CHALLENGE_MAX_AGE_MS // allow 60s clock skew
+}
@@ -6,6 +6,14 @@ import { serve } from 'https://deno.land/std@0.168.0/http/server.ts'
 import { createClient } from 'npm:@supabase/supabase-js@2'
 import { ApiPromise, WsProvider, Keyring } from 'npm:@pezkuwi/api@16.5.36'
 import { cryptoWaitReady } from 'npm:@pezkuwi/util-crypto@14.0.25'
+import {
+  identityToUUID,
+  verifyWalletSignature,
+  buildWithdrawChallenge,
+  assertIdentityOwnedByWallet,
+  consumeNonce,
+  isFreshTimestamp,
+} from '../_shared/identity-auth.ts'

 // Allowed origins for CORS
 const ALLOWED_ORIGINS = [
@@ -35,6 +43,9 @@ const DECIMALS = 12
 // PEZ asset ID
 const PEZ_ASSET_ID = 1

+// People Chain endpoint — required to verify citizen NFT ownership server-side
+const PEOPLE_RPC_ENDPOINT = Deno.env.get('PEOPLE_RPC_ENDPOINT') || 'wss://people-rpc.pezkuwichain.io'
+
 // Minimum withdrawal amounts
 const MIN_WITHDRAW = {
  HEZ: 1,
@@ -49,10 +60,19 @@ const WITHDRAW_FEE = {

 interface WithdrawRequest {
  requestId?: string  // If processing specific request
-  userId: string      // Identity-based UUID (from citizen/visa number)
+
+  // ---- Authorization (all required) ----
+  // The caller proves control of a wallet that OWNS `identityId`. The user_id
+  // is derived server-side from identityId; a client-supplied user_id is IGNORED.
+  identityId?: string      // Citizen number (#42-<item>-<6d>) or visa (V-XXXXXX)
+  signerAddress?: string   // Wallet that signed the challenge
+  signature?: string       // Signature over the canonical withdraw challenge
+  timestamp?: number       // ms epoch, must be fresh
+  nonce?: string           // single-use, replay-protected
+
  token?: 'HEZ' | 'PEZ'
  amount?: number
-  walletAddress?: string
+  walletAddress?: string   // Withdrawal destination (bound into the signature)
 }

 // Cache API connection
@@ -68,6 +88,18 @@ async function getApi(): Promise<ApiPromise> {
  return apiInstance
 }

+// Cache People Chain connection (citizen NFT ownership verification)
+let peopleApiInstance: ApiPromise | null = null
+
+async function getPeopleApi(): Promise<ApiPromise> {
+  if (peopleApiInstance && peopleApiInstance.isConnected) {
+    return peopleApiInstance
+  }
+  const provider = new WsProvider(PEOPLE_RPC_ENDPOINT)
+  peopleApiInstance = await ApiPromise.create({ provider })
+  return peopleApiInstance
+}
+
 // Send tokens from hot wallet
 async function sendTokens(
  api: ApiPromise,
@@ -190,7 +222,8 @@ serve(async (req) => {
  }

  try {
-    // Get authorization header
+    // Get authorization header (transport-level only — NOT the authz boundary).
+    // Real authorization is the wallet signature + identity-ownership proof below.
    const authHeader = req.headers.get('Authorization')
    if (!authHeader) {
      return new Response(
@@ -218,16 +251,74 @@ serve(async (req) => {

    // Parse request body
    const body: WithdrawRequest = await req.json()
-    const { userId } = body
+    const { identityId, signerAddress, signature, timestamp, nonce } = body
    let { requestId, token, amount, walletAddress } = body

-    if (!userId) {
+    // =====================================================
+    // OBJECT-LEVEL AUTHORIZATION (the security boundary)
+    // =====================================================
+    // 1) Require a complete signed challenge.
+    if (!identityId || !signerAddress || !signature || !nonce || typeof timestamp !== 'number') {
      return new Response(
-        JSON.stringify({ success: false, error: 'Missing required field: userId' }),
-        { status: 400, headers: { ...corsHeaders, 'Content-Type': 'application/json' } }
+        JSON.stringify({ success: false, error: 'Missing authorization (identityId, signerAddress, signature, timestamp, nonce required)' }),
+        { status: 401, headers: { ...corsHeaders, 'Content-Type': 'application/json' } }
      )
    }

+    // 2) The signature covers the full withdrawal intent, incl. destination and
+    //    amount. Determine the values that will be bound into the challenge.
+    //    - Mode 1 (requestId): destination/amount/token come from the stored
+    //      request; the client still signs them (fetched before submit).
+    //    - Mode 2: destination/amount/token come from the (signed) body.
+    if (!isFreshTimestamp(timestamp)) {
+      return new Response(
+        JSON.stringify({ success: false, error: 'Authorization challenge expired. Please retry.' }),
+        { status: 401, headers: { ...corsHeaders, 'Content-Type': 'application/json' } }
+      )
+    }
+
+    // 3) Verify the wallet signature over the canonical challenge. For Mode 1 the
+    //    signed destination/amount/token are supplied alongside requestId and are
+    //    re-checked against the stored request after lookup.
+    const challenge = buildWithdrawChallenge({
+      identityId,
+      token: String(token ?? ''),
+      amount: Number(amount ?? 0),
+      destination: String(walletAddress ?? ''),
+      signerAddress,
+      timestamp,
+      nonce,
+    })
+    const sigOk = await verifyWalletSignature(challenge, signature, signerAddress)
+    if (!sigOk) {
+      return new Response(
+        JSON.stringify({ success: false, error: 'Invalid signature' }),
+        { status: 401, headers: { ...corsHeaders, 'Content-Type': 'application/json' } }
+      )
+    }
+
+    // 4) Prove the signing wallet OWNS the claimed identity (citizen NFT / visa).
+    const ownership = await assertIdentityOwnedByWallet(serviceClient, identityId, signerAddress, getPeopleApi)
+    if (!ownership.ok) {
+      return new Response(
+        JSON.stringify({ success: false, error: ownership.error || 'Identity ownership verification failed' }),
+        { status: 403, headers: { ...corsHeaders, 'Content-Type': 'application/json' } }
+      )
+    }
+
+    // 5) Consume the nonce (single-use) to block replay of a captured signature.
+    const nonceOk = await consumeNonce(serviceClient, nonce, 'withdraw')
+    if (!nonceOk) {
+      return new Response(
+        JSON.stringify({ success: false, error: 'Authorization already used (replay detected)' }),
+        { status: 401, headers: { ...corsHeaders, 'Content-Type': 'application/json' } }
+      )
+    }
+
+    // 6) Derive user_id SERVER-SIDE from the verified identity. Any client-supplied
+    //    user_id is intentionally ignored.
+    const userId = await identityToUUID(identityId)
+
    // Mode 1: Process existing request by ID
    if (requestId) {
      const { data: request, error: reqError } = await serviceClient
@@ -246,8 +337,23 @@ serve(async (req) => {
        )
      }

+      // The signed challenge (built from body values) must match the stored
+      // request, so the signature authorizes exactly this withdrawal.
+      const storedAmount = parseFloat(request.amount)
+      const bodyAmount = Number(amount ?? 0)
+      if (
+        String(token ?? '') !== String(request.token) ||
+        String(walletAddress ?? '') !== String(request.wallet_address) ||
+        Math.abs(bodyAmount - storedAmount) > 1e-9
+      ) {
+        return new Response(
+          JSON.stringify({ success: false, error: 'Signed withdrawal does not match the stored request' }),
+          { status: 401, headers: { ...corsHeaders, 'Content-Type': 'application/json' } }
+        )
+      }
+
      token = request.token as 'HEZ' | 'PEZ'
-      amount = parseFloat(request.amount)
+      amount = storedAmount
      walletAddress = request.wallet_address
    }
    // Mode 2: Create new withdrawal request
@@ -199,11 +199,16 @@ serve(async (req: Request) => {
  }

  try {
-    // Verify authorization (should be called with service role key or admin JWT)
+    // Authorization: this batch processor drains ALL pending withdrawal requests
+    // to their destination wallets, so it MUST be restricted to the backend
+    // service role (cron / admin tooling). Merely having *any* bearer token
+    // (e.g. the public anon key) is NOT sufficient — previously that let anyone
+    // trigger mass processing.
    const authHeader = req.headers.get("Authorization");
-    if (!authHeader) {
+    const bearer = authHeader?.replace(/^Bearer\s+/i, "").trim();
+    if (!bearer || bearer !== SUPABASE_SERVICE_ROLE_KEY) {
      return new Response(
-        JSON.stringify({ error: "Unauthorized" }),
+        JSON.stringify({ error: "Unauthorized: service role required" }),
        { status: 401, headers }
      );
    }
@@ -0,0 +1,151 @@
+// resolve-dispute Edge Function
+//
+// Server-side authorization for privileged P2P dispute actions (claim / resolve).
+// The admin authorization is NOT the client isAdmin flag (which is cosmetic and
+// bypassable). Here we:
+//   1. Verify a wallet signature over a canonical admin-action challenge.
+//   2. Check the signing wallet is in the server-side admin wallet set.
+//   3. Enforce freshness + single-use nonce (replay protection).
+//   4. For 'resolve', invoke admin_resolve_dispute() with the service role so the
+//      escrow movement + status changes happen atomically server-side.
+
+import { serve } from 'https://deno.land/std@0.168.0/http/server.ts'
+import { createClient } from 'npm:@supabase/supabase-js@2'
+import {
+  verifyWalletSignature,
+  buildAdminChallenge,
+  consumeNonce,
+  isFreshTimestamp,
+} from '../_shared/identity-auth.ts'
+
+const ALLOWED_ORIGINS = [
+  'https://app.pezkuwichain.io',
+  'https://www.pezkuwichain.io',
+  'https://pezkuwichain.io',
+]
+
+function getCorsHeaders(origin: string | null) {
+  const allowedOrigin = origin && ALLOWED_ORIGINS.includes(origin) ? origin : ALLOWED_ORIGINS[0]
+  return {
+    'Access-Control-Allow-Origin': allowedOrigin,
+    'Access-Control-Allow-Headers': 'authorization, x-client-info, apikey, content-type',
+    'Access-Control-Allow-Credentials': 'true',
+  }
+}
+
+// Authoritative admin wallet set (server-side). Overridable via ADMIN_WALLETS
+// (comma-separated SS58). Defaults mirror the historical client whitelist.
+function getAdminWallets(): string[] {
+  const env = Deno.env.get('ADMIN_WALLETS')
+  if (env) return env.split(',').map(s => s.trim()).filter(Boolean)
+  return [
+    '5CyuFfbF95rzBxru7c9yEsX4XmQXUxpLUcbj9RLg9K1cGiiF', // Founder
+    '5EhCpn82QtdU53MF6PoNFrKHgSrsfcAxFTMwrn3JYf9dioQw', // Treasury admin
+    '5ELgySrX5ZyK7EWXjj6bAedyTCcTNWDANbiiipsT5gnpoCEp', // Admin
+  ]
+}
+
+interface Body {
+  action?: 'claim' | 'resolve'
+  disputeId?: string
+  tradeId?: string
+  decision?: string
+  reasoning?: string
+  adminAddress?: string
+  signature?: string
+  timestamp?: number
+  nonce?: string
+}
+
+serve(async (req) => {
+  const corsHeaders = getCorsHeaders(req.headers.get('Origin'))
+  const json = (status: number, obj: unknown) =>
+    new Response(JSON.stringify(obj), { status, headers: { ...corsHeaders, 'Content-Type': 'application/json' } })
+
+  if (req.method === 'OPTIONS') {
+    return new Response(null, { headers: corsHeaders })
+  }
+
+  try {
+    const supabaseUrl = Deno.env.get('SUPABASE_URL')!
+    const supabaseServiceKey = Deno.env.get('SUPABASE_SERVICE_ROLE_KEY')!
+    const serviceClient = createClient(supabaseUrl, supabaseServiceKey)
+
+    const body: Body = await req.json()
+    const { action, disputeId, tradeId, decision, reasoning, adminAddress, signature, timestamp, nonce } = body
+
+    if (!action || !['claim', 'resolve'].includes(action)) {
+      return json(400, { success: false, error: 'Invalid action' })
+    }
+    if (!disputeId || !tradeId || !adminAddress || !signature || !nonce || typeof timestamp !== 'number') {
+      return json(401, { success: false, error: 'Missing authorization fields' })
+    }
+    if (action === 'resolve' && (!decision || !reasoning)) {
+      return json(400, { success: false, error: 'Decision and reasoning are required' })
+    }
+
+    // 1) Freshness
+    if (!isFreshTimestamp(timestamp)) {
+      return json(401, { success: false, error: 'Authorization challenge expired. Please retry.' })
+    }
+
+    // 2) Verify signature over the canonical admin challenge
+    const challenge = buildAdminChallenge({
+      action,
+      disputeId,
+      tradeId,
+      decision: String(decision ?? ''),
+      adminAddress,
+      timestamp,
+      nonce,
+    })
+    const sigOk = await verifyWalletSignature(challenge, signature, adminAddress)
+    if (!sigOk) {
+      return json(401, { success: false, error: 'Invalid signature' })
+    }
+
+    // 3) Server-side admin authorization
+    if (!getAdminWallets().includes(adminAddress)) {
+      return json(403, { success: false, error: 'Wallet is not authorized for admin actions' })
+    }
+
+    // 4) Replay protection
+    const nonceOk = await consumeNonce(serviceClient, nonce, `admin_${action}`)
+    if (!nonceOk) {
+      return json(401, { success: false, error: 'Authorization already used (replay detected)' })
+    }
+
+    // ---- CLAIM ----
+    if (action === 'claim') {
+      const { error } = await serviceClient
+        .from('p2p_fiat_disputes')
+        .update({ status: 'under_review', assigned_at: new Date().toISOString() })
+        .eq('id', disputeId)
+      if (error) return json(500, { success: false, error: 'Failed to claim dispute' })
+      return json(200, { success: true, action: 'claim' })
+    }
+
+    // ---- RESOLVE (atomic escrow movement + status) ----
+    const { data, error } = await serviceClient.rpc('admin_resolve_dispute', {
+      p_dispute_id: disputeId,
+      p_trade_id: tradeId,
+      p_decision: decision,
+      p_reasoning: reasoning,
+      p_admin_ref: adminAddress,
+    })
+
+    if (error) {
+      console.error('admin_resolve_dispute error:', error)
+      return json(500, { success: false, error: error.message || 'Resolution failed' })
+    }
+    const result = typeof data === 'string' ? JSON.parse(data) : data
+    if (!result?.success) {
+      return json(400, { success: false, error: result?.error || 'Resolution failed' })
+    }
+
+    return json(200, { success: true, ...result })
+  } catch (error) {
+    console.error('resolve-dispute error:', error)
+    return json(500, { success: false, error: 'Internal server error' })
+  }
+})
@@ -8,6 +8,7 @@ import { createClient } from 'npm:@supabase/supabase-js@2'
 import { ApiPromise, WsProvider } from 'npm:@pezkuwi/api@16.5.36'
 import { blake2b } from 'npm:@noble/hashes@1.7.1/blake2b'
 import { base58 } from 'npm:@scure/base@1.2.4'
+import { assertIdentityOwnedByWallet } from '../_shared/identity-auth.ts'

 // Allowed origins for CORS
 const ALLOWED_ORIGINS = [
@@ -61,6 +62,17 @@ async function identityToUUID(identityId: string): Promise<string> {
 // PEZ asset ID
 const PEZ_ASSET_ID = 1

+// People Chain endpoint — required to verify citizen NFT ownership server-side
+const PEOPLE_RPC_ENDPOINT = Deno.env.get('PEOPLE_RPC_ENDPOINT') || 'wss://people-rpc.pezkuwichain.io'
+
+let peopleApiInstance: ApiPromise | null = null
+async function getPeopleApi(): Promise<ApiPromise> {
+  if (peopleApiInstance && peopleApiInstance.isConnected) return peopleApiInstance
+  const provider = new WsProvider(PEOPLE_RPC_ENDPOINT)
+  peopleApiInstance = await ApiPromise.create({ provider })
+  return peopleApiInstance
+}
+
 interface DepositRequest {
  txHash: string
  token: 'HEZ' | 'PEZ'
@@ -501,6 +513,30 @@ serve(async (req) => {
      )
    }

+    // Bind the crediting identity to the depositing wallet. The on-chain sender
+    // has just been proven to equal `walletAddress`; requiring that wallet to
+    // OWN `identityId` prevents crediting a balance the depositor does not own
+    // (citizen NFT / active visa binding).
+    const depositOwnership = await assertIdentityOwnedByWallet(serviceClient, identityId, walletAddress, getPeopleApi)
+    if (!depositOwnership.ok) {
+      await serviceClient
+        .from('p2p_deposit_withdraw_requests')
+        .update({
+          status: 'failed',
+          error_message: `Identity ownership check failed: ${depositOwnership.error}`,
+          processed_at: new Date().toISOString()
+        })
+        .eq('id', depositRequest.id)
+
+      return new Response(
+        JSON.stringify({
+          success: false,
+          error: depositOwnership.error || 'Depositing wallet does not own this identity'
+        }),
+        { status: 403, headers: { ...corsHeaders, 'Content-Type': 'application/json' } }
+      )
+    }
+
    // Process deposit
    const { data: processResult, error: processError } = await serviceClient
      .rpc('process_deposit', {
@@ -0,0 +1,118 @@
+-- =====================================================
+-- Migration: Withdrawal authorization hardening
+-- Date: 2026-07-25
+-- =====================================================
+--
+-- Part of the fix for the CRITICAL broken-object-level-auth finding on the
+-- withdrawal path. Two defenses:
+--
+--   1. Replay protection for the signed withdrawal challenge (nonce store).
+--   2. Defense-in-depth: request_withdraw() may ONLY be executed by the backend
+--      service role. Previously it was executable by anon/authenticated, so an
+--      attacker with the public anon key could call it directly with a victim's
+--      user_id to create a pending withdrawal to an attacker-controlled wallet,
+--      which the batch processor would then pay out.
+--
+
+-- =====================================================
+-- 1. CHALLENGE NONCE STORE (single-use signed challenges)
+-- =====================================================
+CREATE TABLE IF NOT EXISTS public.p2p_challenge_nonces (
+  nonce      TEXT PRIMARY KEY,
+  purpose    TEXT NOT NULL,
+  created_at TIMESTAMPTZ NOT NULL DEFAULT NOW()
+);
+
+CREATE INDEX IF NOT EXISTS idx_p2p_challenge_nonces_created
+  ON public.p2p_challenge_nonces(created_at);
+
+ALTER TABLE public.p2p_challenge_nonces ENABLE ROW LEVEL SECURITY;
+
+-- Only the service role (edge functions) may read/write nonces.
+DROP POLICY IF EXISTS "challenge_nonces_service_only" ON public.p2p_challenge_nonces;
+CREATE POLICY "challenge_nonces_service_only" ON public.p2p_challenge_nonces
+  FOR ALL USING (auth.role() = 'service_role') WITH CHECK (auth.role() = 'service_role');
+
+REVOKE ALL ON public.p2p_challenge_nonces FROM anon, authenticated, PUBLIC;
+
+-- =====================================================
+-- 2. LOCK request_withdraw() TO SERVICE ROLE
+-- =====================================================
+-- Recreate with an explicit service-role guard (mirrors process_deposit()).
+CREATE OR REPLACE FUNCTION request_withdraw(
+  p_user_id UUID,
+  p_token TEXT,
+  p_amount DECIMAL(20, 12),
+  p_wallet_address TEXT
+) RETURNS JSON AS $$
+DECLARE
+  v_balance RECORD;
+  v_request_id UUID;
+BEGIN
+  -- SECURITY: backend service role only. Object-level authorization (proving the
+  -- caller owns p_user_id) is enforced by the process-withdraw edge function via
+  -- a verified wallet signature before this is ever invoked.
+  IF current_setting('role', true) <> 'service_role'
+     AND current_setting('request.jwt.claim.role', true) <> 'service_role' THEN
+    RETURN json_build_object(
+      'success', false,
+      'error', 'UNAUTHORIZED: withdrawals must go through the backend service'
+    );
+  END IF;
+
+  -- Lock user's balance
+  SELECT * INTO v_balance
+  FROM user_internal_balances
+  WHERE user_id = p_user_id AND token = p_token
+  FOR UPDATE;
+
+  -- Check sufficient available balance
+  IF v_balance IS NULL OR v_balance.available_balance < p_amount THEN
+    RETURN json_build_object(
+      'success', false,
+      'error', 'Insufficient available balance. Available: ' || COALESCE(v_balance.available_balance, 0)
+    );
+  END IF;
+
+  -- Lock the amount (move to locked_balance)
+  UPDATE user_internal_balances
+  SET
+    available_balance = available_balance - p_amount,
+    locked_balance = locked_balance + p_amount,
+    updated_at = NOW()
+  WHERE user_id = p_user_id AND token = p_token;
+
+  -- Create withdrawal request
+  INSERT INTO p2p_deposit_withdraw_requests (
+    user_id, request_type, token, amount, wallet_address, status
+  ) VALUES (
+    p_user_id, 'withdraw', p_token, p_amount, p_wallet_address, 'pending'
+  ) RETURNING id INTO v_request_id;
+
+  -- Log the transaction
+  INSERT INTO p2p_balance_transactions (
+    user_id, token, transaction_type, amount,
+    balance_before, balance_after, reference_type, reference_id,
+    description
+  ) VALUES (
+    p_user_id, p_token, 'withdraw', -p_amount,
+    v_balance.available_balance, v_balance.available_balance - p_amount, 'withdraw_request', v_request_id,
+    'Withdrawal request to ' || p_wallet_address
+  );
+
+  RETURN json_build_object(
+    'success', true,
+    'request_id', v_request_id,
+    'amount', p_amount,
+    'wallet_address', p_wallet_address,
+    'status', 'pending'
+  );
+END;
+$$ LANGUAGE plpgsql SECURITY DEFINER;
+
+REVOKE EXECUTE ON FUNCTION request_withdraw(UUID, TEXT, DECIMAL, TEXT) FROM PUBLIC, anon, authenticated;
+
+COMMENT ON FUNCTION request_withdraw IS
+'Create withdrawal request and lock balance. SERVICE ROLE ONLY — called by the
+process-withdraw edge function after it verifies the caller owns the identity via
+a wallet signature. Never call directly from the client.';
@@ -0,0 +1,122 @@
+-- =====================================================
+-- Migration: Harden RLS on financial + PII tables
+-- Date: 2026-07-25
+-- =====================================================
+--
+-- Forward migration (does NOT rewrite history) that removes the blanket
+-- `USING (true)` read policies added in 20260223160000_fix_rls_for_wallet_auth
+-- on the crown-jewel financial/PII tables, so the public anon key can no longer
+-- enumerate every user's balances, ledger history, deposit/withdraw requests, or
+-- payment-method PII.
+--
+-- Reads the app legitimately needs are moved behind SECURITY DEFINER RPCs that
+-- return only the requested user's rows (instead of the whole table). Writes to
+-- these tables already go through service_role edge functions / SECURITY DEFINER
+-- RPCs, so no client write path is affected.
+--
+-- NOTE (residual, tracked): user_id is a UUID v5 derived from a citizen/visa
+-- number, which is not a secret. These RPCs remove full-table exfiltration but do
+-- not yet cryptographically bind the reader to the row owner. Fully closing that
+-- requires a signed-session read path (same mechanism as withdrawals) applied to
+-- these reads — see the security report. The high-severity leak (dump ALL rows)
+-- is closed here.
+
+-- =====================================================
+-- 1. user_internal_balances — no direct client reads (uses
+--    get_user_internal_balance RPC which is SECURITY DEFINER and bypasses RLS)
+-- =====================================================
+DROP POLICY IF EXISTS "balances_anon_select" ON public.user_internal_balances;
+-- No anon policy remains -> anon/authenticated cannot read the table directly.
+-- SECURITY DEFINER RPCs (get_user_internal_balance) continue to work.
+
+-- =====================================================
+-- 2. p2p_balance_transactions — replace open SELECT with a scoped RPC
+-- =====================================================
+DROP POLICY IF EXISTS "balance_tx_anon_select" ON public.p2p_balance_transactions;
+
+CREATE OR REPLACE FUNCTION public.get_user_balance_transactions(
+  p_user_id UUID,
+  p_limit INT DEFAULT 50
+) RETURNS SETOF public.p2p_balance_transactions AS $$
+  SELECT *
+  FROM public.p2p_balance_transactions
+  WHERE user_id = p_user_id
+  ORDER BY created_at DESC
+  LIMIT LEAST(GREATEST(COALESCE(p_limit, 50), 1), 200);
+$$ LANGUAGE sql STABLE SECURITY DEFINER;
+
+GRANT EXECUTE ON FUNCTION public.get_user_balance_transactions(UUID, INT) TO anon, authenticated;
+
+COMMENT ON FUNCTION public.get_user_balance_transactions IS
+'Returns balance-transaction history for a single user_id only (no full-table
+dump). Replaces the removed USING(true) SELECT policy.';
+
+-- =====================================================
+-- 3. p2p_deposit_withdraw_requests — replace open SELECT with a scoped RPC
+--    (service_role write policy from 20260223160000 is retained)
+-- =====================================================
+DROP POLICY IF EXISTS "deposit_requests_anon_select" ON public.p2p_deposit_withdraw_requests;
+
+CREATE OR REPLACE FUNCTION public.get_user_deposit_withdraw_requests(
+  p_user_id UUID,
+  p_limit INT DEFAULT 50
+) RETURNS SETOF public.p2p_deposit_withdraw_requests AS $$
+  SELECT *
+  FROM public.p2p_deposit_withdraw_requests
+  WHERE user_id = p_user_id
+  ORDER BY created_at DESC
+  LIMIT LEAST(GREATEST(COALESCE(p_limit, 50), 1), 200);
+$$ LANGUAGE sql STABLE SECURITY DEFINER;
+
+GRANT EXECUTE ON FUNCTION public.get_user_deposit_withdraw_requests(UUID, INT) TO anon, authenticated;
+
+COMMENT ON FUNCTION public.get_user_deposit_withdraw_requests IS
+'Returns deposit/withdraw requests for a single user_id only. Replaces the
+removed USING(true) SELECT policy.';
+
+-- =====================================================
+-- 4. p2p_user_payment_methods (IBAN / payment PII) — lock to service role
+--    (no direct client access exists; offers embed encrypted payment details).
+-- =====================================================
+DO $$
+BEGIN
+  IF EXISTS (SELECT 1 FROM information_schema.tables
+             WHERE table_schema = 'public' AND table_name = 'p2p_user_payment_methods') THEN
+    EXECUTE 'ALTER TABLE public.p2p_user_payment_methods ENABLE ROW LEVEL SECURITY';
+    EXECUTE 'DROP POLICY IF EXISTS "user_pm_anon_select" ON public.p2p_user_payment_methods';
+    EXECUTE 'DROP POLICY IF EXISTS "user_pm_anon_insert" ON public.p2p_user_payment_methods';
+    EXECUTE 'DROP POLICY IF EXISTS "user_pm_anon_update" ON public.p2p_user_payment_methods';
+    EXECUTE 'DROP POLICY IF EXISTS "user_pm_service_only" ON public.p2p_user_payment_methods';
+    EXECUTE 'CREATE POLICY "user_pm_service_only" ON public.p2p_user_payment_methods
+               FOR ALL USING (auth.role() = ''service_role'') WITH CHECK (auth.role() = ''service_role'')';
+    EXECUTE 'REVOKE ALL ON public.p2p_user_payment_methods FROM anon, authenticated, PUBLIC';
+  END IF;
+END $$;
+
+-- =====================================================
+-- 5. p2p_fiat_disputes — remove world-open UPDATE.
+--    Dispute state transitions (claim/resolve) now go through the service-role
+--    `resolve-dispute` edge function (which verifies the admin wallet signature).
+--    Regular users still INSERT disputes (disputes_anon_insert retained).
+-- =====================================================
+DROP POLICY IF EXISTS "disputes_anon_update" ON public.p2p_fiat_disputes;
+DROP POLICY IF EXISTS "disputes_service_update" ON public.p2p_fiat_disputes;
+CREATE POLICY "disputes_service_update" ON public.p2p_fiat_disputes
+  FOR UPDATE USING (auth.role() = 'service_role') WITH CHECK (auth.role() = 'service_role');
+
+-- =====================================================
+-- Done. Balances, ledger, deposit/withdraw requests and payment PII are no longer
+-- world-readable via the anon key; dispute resolution is no longer world-writable.
+--
+-- RESIDUAL (documented in the security report, NOT closed here to avoid breaking
+-- the live app without the signed-session refactor):
+--   * p2p_fiat_offers / p2p_fiat_trades / p2p_messages still carry USING(true)
+--     policies because the client reads/writes them directly with the anon key
+--     and there is no server session to bind to. Marking a trade status does not
+--     itself move funds.
+--   * The internal-ledger escrow RPCs (lock_/release_/refund_escrow_internal)
+--     are still EXECUTE-able by anon (confirmPaymentReceived / createFiatOffer
+--     call them directly). This is a SEPARATE critical hole that needs the same
+--     signed-challenge mechanism applied to trade actions (an authenticated
+--     confirm-payment / create-offer edge function). See report.
+-- =====================================================
@@ -0,0 +1,158 @@
+-- =====================================================
+-- Migration: Atomic admin dispute resolution (moves escrow)
+-- Date: 2026-07-25
+-- =====================================================
+--
+-- Fix for the CRITICAL fund-logic finding: the admin Dispute Resolution panel
+-- only relabelled p2p_fiat_trades.status and NEVER moved escrow, so "buyer wins"
+-- paid nothing, "refund seller" left funds locked, and "split" was unhandled.
+--
+-- This SECURITY DEFINER function performs the escrow movement AND all status
+-- changes in a single transaction. It is service-role only; caller identity
+-- (admin) is verified by the resolve-dispute edge function via a wallet
+-- signature before this is invoked.
+--
+-- ESCROW ACCOUNTING (verified against createFiatOffer + accept_p2p_offer):
+--   * createFiatOffer locks the FULL offer amount (available -> locked).
+--   * accept_p2p_offer does NOT lock again; it only decrements
+--     offer.remaining_amount. So: seller.locked == remaining_amount + SUM(active
+--     trade amounts) for the offer.
+--   Therefore, per trade of amount X:
+--     - release_to_buyer : locked(seller) -= X, available(buyer) += X.  (offer untouched)
+--     - refund_to_seller : locked(seller) -= X, available(seller) += X. (offer untouched)
+--     - split            : release X/2 to buyer + refund X/2 to seller. (offer untouched)
+--   remaining_amount is intentionally NOT restored (that would double-count the
+--   funds — a latent bug in the older resolve_p2p_dispute()).
+
+CREATE OR REPLACE FUNCTION public.admin_resolve_dispute(
+  p_dispute_id UUID,
+  p_trade_id UUID,
+  p_decision TEXT,            -- 'release_to_buyer' | 'refund_to_seller' | 'split' | 'escalate'
+  p_reasoning TEXT,
+  p_admin_ref TEXT            -- admin wallet address (for audit only)
+) RETURNS JSON AS $$
+DECLARE
+  v_trade RECORD;
+  v_token TEXT;
+  v_half DECIMAL(20, 12);
+  v_res JSON;
+  v_trade_status TEXT;
+BEGIN
+  -- SECURITY: backend service role only. Admin identity is verified upstream by
+  -- the resolve-dispute edge function (wallet signature vs. admin wallet set).
+  IF current_setting('role', true) <> 'service_role'
+     AND current_setting('request.jwt.claim.role', true) <> 'service_role' THEN
+    RETURN json_build_object('success', false, 'error', 'UNAUTHORIZED: service role required');
+  END IF;
+
+  IF p_reasoning IS NULL OR length(trim(p_reasoning)) = 0 THEN
+    RETURN json_build_object('success', false, 'error', 'Reasoning is required');
+  END IF;
+
+  IF p_decision NOT IN ('release_to_buyer', 'refund_to_seller', 'split', 'escalate') THEN
+    RETURN json_build_object('success', false, 'error', 'Invalid decision');
+  END IF;
+
+  -- Lock the trade row
+  SELECT * INTO v_trade FROM public.p2p_fiat_trades WHERE id = p_trade_id FOR UPDATE;
+  IF NOT FOUND THEN
+    RETURN json_build_object('success', false, 'error', 'Trade not found');
+  END IF;
+
+  -- ----- ESCALATE: no fund movement, just mark dispute escalated -----
+  IF p_decision = 'escalate' THEN
+    UPDATE public.p2p_fiat_disputes
+    SET status = 'escalated', decision = 'escalate', decision_reasoning = p_reasoning, updated_at = NOW()
+    WHERE id = p_dispute_id;
+
+    INSERT INTO public.p2p_audit_log (user_id, action, entity_type, entity_id, details)
+    VALUES (NULL, 'dispute_escalated', 'trade', p_trade_id,
+      jsonb_build_object('dispute_id', p_dispute_id, 'admin_ref', p_admin_ref, 'reasoning', p_reasoning));
+
+    RETURN json_build_object('success', true, 'decision', 'escalate');
+  END IF;
+
+  -- For fund-moving decisions the trade must be in dispute.
+  IF v_trade.status <> 'disputed' THEN
+    RETURN json_build_object('success', false, 'error', 'Trade is not in disputed status (current: ' || v_trade.status || ')');
+  END IF;
+
+  -- Resolve token from the offer
+  SELECT token INTO v_token FROM public.p2p_fiat_offers WHERE id = v_trade.offer_id;
+  IF v_token IS NULL THEN
+    RETURN json_build_object('success', false, 'error', 'Offer/token not found for trade');
+  END IF;
+
+  IF p_decision = 'release_to_buyer' THEN
+    v_res := public.release_escrow_internal(
+      v_trade.seller_id, v_trade.buyer_id, v_token, v_trade.crypto_amount, 'dispute_resolution', p_trade_id);
+    IF (v_res->>'success')::boolean IS NOT TRUE THEN
+      RAISE EXCEPTION 'release_escrow_internal failed: %', COALESCE(v_res->>'error', 'unknown');
+    END IF;
+    v_trade_status := 'completed';
+
+  ELSIF p_decision = 'refund_to_seller' THEN
+    v_res := public.refund_escrow_internal(
+      v_trade.seller_id, v_token, v_trade.crypto_amount, 'dispute_resolution', p_trade_id);
+    IF (v_res->>'success')::boolean IS NOT TRUE THEN
+      RAISE EXCEPTION 'refund_escrow_internal failed: %', COALESCE(v_res->>'error', 'unknown');
+    END IF;
+    v_trade_status := 'refunded';
+
+  ELSIF p_decision = 'split' THEN
+    v_half := ROUND(v_trade.crypto_amount / 2, 12);
+    -- Half to buyer
+    v_res := public.release_escrow_internal(
+      v_trade.seller_id, v_trade.buyer_id, v_token, v_half, 'dispute_resolution_split', p_trade_id);
+    IF (v_res->>'success')::boolean IS NOT TRUE THEN
+      RAISE EXCEPTION 'split release failed: %', COALESCE(v_res->>'error', 'unknown');
+    END IF;
+    -- Remainder back to seller (handles odd cents deterministically)
+    v_res := public.refund_escrow_internal(
+      v_trade.seller_id, v_token, v_trade.crypto_amount - v_half, 'dispute_resolution_split', p_trade_id);
+    IF (v_res->>'success')::boolean IS NOT TRUE THEN
+      RAISE EXCEPTION 'split refund failed: %', COALESCE(v_res->>'error', 'unknown');
+    END IF;
+    v_trade_status := 'completed';
+  END IF;
+
+  -- Update trade
+  UPDATE public.p2p_fiat_trades
+  SET status = v_trade_status,
+      completed_at = CASE WHEN v_trade_status = 'completed' THEN NOW() ELSE completed_at END,
+      escrow_released_at = NOW(),
+      dispute_resolved_at = NOW(),
+      dispute_resolution = p_decision || ': ' || COALESCE(p_reasoning, ''),
+      updated_at = NOW()
+  WHERE id = p_trade_id;
+
+  -- Update dispute
+  UPDATE public.p2p_fiat_disputes
+  SET status = 'resolved', decision = p_decision, decision_reasoning = p_reasoning,
+      resolved_at = NOW(), updated_at = NOW()
+  WHERE id = p_dispute_id;
+
+  -- Notify both parties (best-effort, same txn)
+  INSERT INTO public.p2p_notifications (user_id, type, title, message, reference_type, reference_id)
+  VALUES
+    (v_trade.seller_id, 'dispute_resolved', 'Dispute Resolved', 'Your dispute was resolved: ' || p_decision, 'dispute', p_dispute_id),
+    (v_trade.buyer_id,  'dispute_resolved', 'Dispute Resolved', 'Your dispute was resolved: ' || p_decision, 'dispute', p_dispute_id);
+
+  -- Audit
+  INSERT INTO public.p2p_audit_log (user_id, action, entity_type, entity_id, details)
+  VALUES (NULL, 'dispute_resolved', 'trade', p_trade_id,
+    jsonb_build_object(
+      'dispute_id', p_dispute_id, 'decision', p_decision, 'admin_ref', p_admin_ref,
+      'reasoning', p_reasoning, 'seller_id', v_trade.seller_id, 'buyer_id', v_trade.buyer_id,
+      'amount', v_trade.crypto_amount, 'token', v_token));
+
+  RETURN json_build_object('success', true, 'decision', p_decision, 'trade_id', p_trade_id, 'token', v_token, 'amount', v_trade.crypto_amount);
+END;
+$$ LANGUAGE plpgsql SECURITY DEFINER;
+
+REVOKE EXECUTE ON FUNCTION public.admin_resolve_dispute(UUID, UUID, TEXT, TEXT, TEXT) FROM PUBLIC, anon, authenticated;
+
+COMMENT ON FUNCTION public.admin_resolve_dispute IS
+'Atomically resolves a P2P dispute: moves escrow (release/refund/split) AND
+updates trade + dispute status + notifications in one transaction. SERVICE ROLE
+ONLY — admin identity is verified by the resolve-dispute edge function.';