Cosmos Labs Criticized Over Handling of Critical Bug Affecting Four Blockchains

Cosmos Labs has faced criticism from the crypto security community over its handling of a bug in its Cosmos EVM module. The issue, which was quietly patched last week, affected four blockchains: MANTRA, TAC, KiiChain, and Nesa.

The developer, Cosmos Labs, eventually issued a warning to validators on affected networks to halt their chains, but the delay has raised questions about its disclosure process.

Two of the networks, TAC and KiiChain, were exploited, with KiiChain losing nearly 150 million tokens worth over $9 million. The tokens were dumped for just $1.6 million in BUSD, causing a brief price crash.

Cosmos Labs' policy of a 'silent patch model,' which allows it to release security fixes without warning, has been criticized as negligent. KiiChain's post-mortem report blamed the disclosure process and lack of advance notice for the loss.