Cosmos Hub Halts After Neutron Governance Attack Causes $9.5M in Losses

A governance attack on Neutron, a Cosmos-ecosystem chain, led to a 24-hour halt in block production on the Cosmos Hub. The attacker passed a malicious proposal that allowed them to drain contracts of assets worth $4.9 million and $4.4 million from Astroport and Drop respectively.

The total losses were estimated at $9.5 million, but the attacker was only able to extract around 20% of this amount, leaving the rest stuck on halted networks.

Cosmos Hub validators decided to halt block production after Neutron was paused, securing an additional 1.2 million ATOM ($1.73 · Live) (over $2.2 million) held in the attacker’s address.