Cosmos EVM Chains Ordered to Halt Amid Cross-Network Exploit

Cosmos Labs has urged affected Cosmos EVM chains to request validator halts after a cross-network security incident, which resulted in significant losses for KiiChain and potentially other networks. The vulnerability involves precompiles, vesting, staking, and balance handling.

KiiChain reported a loss of 148,326,583.15 KII on August 22, with an attacker draining funds repeatedly over 18 transactions before validators stopped the network at block 9,355,723.

The incident follows a similar flaw in the ICS20 precompile that caused an estimated $7 million loss on SagaEVM in January, and Cosmos Labs has not yet published an aggregate loss figure or confirmed whether the same attacker controlled every address involved.