1.23M Stolen ATOM Held Hostage by Cosmos Governance Vote
A recent attack on Neutron saw approximately $1.88 million in ATOM stolen through a governance proposal, but Cosmos validators quickly secured 1.23 million of those assets with an emergency patch.
The attackers exploited Neutron's governance process to gain administrative control over contracts used by Astroport and other protocols, and then moved the stolen assets to the Cosmos Hub.
Hub validators halted their chain at a specific height and agreed to restart on a patched version of the Gaia software, which transferred 1.23 million ATOM from the attacker-linked address to a recovery multisig before ordinary transactions resumed.
However, the six signers holding the multisig wallet have stated that they will only release the funds after a separate Cosmos Hub governance proposal passes authorizing a legitimate transfer.