Cosmos EVM Security Breach Triggers Emergency Shutdowns Across Multiple Chains

A security vulnerability in the Cosmos EVM (Ethereum Virtual Machine) framework led to emergency shutdowns across multiple chains, compromising user assets and triggering a comprehensive investigation by Cosmos Labs.

The issue was first detected on August 24, with Cosmos Labs advising affected chains to halt operations due to an ongoing security breach. The vulnerability exploited allowed malicious actors to drain funds from user wallets, resulting in significant losses for KiiChain and TAC networks.

KiiChain reported that a total of 148,326,583.15 KII tokens were stolen on August 22 through 18 consecutive attacks. Meanwhile, TAC network suspended operations after an attacker exploited a single account using the Cosmos EVM precompile vulnerability.

MANTRA successfully restarted its blockchain after approximately 30 hours of downtime, confirming no user funds were compromised. However, the incident highlights the potential risks associated with shared infrastructure and the importance of proactive security measures.