From 83d5bae5154e97ba74eb03acf34eab46f8a32426 Mon Sep 17 00:00:00 2001
From: Mohammed Ryaan <mohammedryaan@bitgo.com>
Date: Mon, 6 Jul 2026 22:26:03 +0530
Subject: [PATCH] fix(sdk-coin-eth): fix verifyTransaction for zama TSS tx
 TICKET: CHALO-726

---
 modules/sdk-coin-eth/src/erc7984Token.ts      |  4 ++
 .../sdk-coin-eth/test/unit/erc7984Token.ts    | 38 +++++++++++++++++++
 2 files changed, 42 insertions(+)

diff --git a/modules/sdk-coin-eth/src/erc7984Token.ts b/modules/sdk-coin-eth/src/erc7984Token.ts
index 35d4d68074..6712b6bba1 100644
--- a/modules/sdk-coin-eth/src/erc7984Token.ts
+++ b/modules/sdk-coin-eth/src/erc7984Token.ts
@@ -147,6 +147,10 @@ export class Erc7984Token extends Eth {
       verification?.consolidationToBaseAddress ||
       txPrebuild?.consolidateId ||
       txParams?.type === 'consolidate' ||
+      // TSS signing path: resolveEffectiveTxParams sets type from intent.intentType which is
+      // 'consolidateToken' for ERC-7984 token consolidations. txPrebuild has only txHex
+      // (no consolidateId) in this path.
+      txParams?.type === 'consolidateToken' ||
       txParams?.prebuildTx?.consolidateId
     );
   }
diff --git a/modules/sdk-coin-eth/test/unit/erc7984Token.ts b/modules/sdk-coin-eth/test/unit/erc7984Token.ts
index bf923dfb37..348585cdb4 100644
--- a/modules/sdk-coin-eth/test/unit/erc7984Token.ts
+++ b/modules/sdk-coin-eth/test/unit/erc7984Token.ts
@@ -1108,4 +1108,42 @@ describe('verifyTransaction – confidential consolidation (FlushERC7984Forwarde
       })
       .should.be.rejectedWith(/forwarder address mismatch/);
   });
+
+  // TSS MPCv2 signing path — resolveEffectiveTxParams sets type from intent.intentType ('consolidateToken'),
+  // and txPrebuild has only txHex (no consolidateId, no recipients). This was the broken path before
+  // isConsolidationTransaction was updated to recognise 'consolidateToken'.
+  it('should verify a valid direct callFromParent consolidation tx when type is consolidateToken (TSS MPCv2 signing path)', async function () {
+    const txHex = await buildDirectConsolidationTxHex();
+    const wallet = new Wallet(bitgo, coin, {
+      coinSpecific: { baseAddress: CONSOLIDATION_BASE_ADDRESS },
+    });
+
+    const result = await coin.verifyTransaction({
+      txParams: {
+        type: 'consolidateToken',
+        recipients: [{ address: CONSOLIDATION_FORWARDER, amount: '0' }],
+      } as any,
+      txPrebuild: { txHex } as any,
+      wallet,
+    });
+    result.should.equal(true);
+  });
+
+  it('should reject callFromParent consolidation with type consolidateToken when parent address does not match wallet base address', async function () {
+    const txHex = await buildDirectConsolidationTxHex();
+    const wallet = new Wallet(bitgo, coin, {
+      coinSpecific: { baseAddress: '0xaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa' },
+    });
+
+    await coin
+      .verifyTransaction({
+        txParams: {
+          type: 'consolidateToken',
+          recipients: [{ address: CONSOLIDATION_FORWARDER, amount: '0' }],
+        } as any,
+        txPrebuild: { txHex } as any,
+        wallet,
+      })
+      .should.be.rejectedWith(/parent address mismatch/);
+  });
 });