Cosmos Labs Faces Fresh Security Incident as Connected Chains Halt Validators
Cosmos Labs has confirmed an ongoing security incident affecting its Ethereum Virtual Machine (EVM) module, prompting connected chains to halt validators while security teams investigate.
No specific vulnerability details have been disclosed, and no affected chain names or loss figures have been released. However, the company has committed to publishing a full post-mortem analysis once the incident is resolved.
This is not the first security issue affecting the Cosmos EVM ecosystem in 2026, with previous incidents including a $7 million exploit in January and outages in August where MANTRA halted block production for roughly 30 hours. The immediate market reaction has been sharp, with Cosmos token trading experiencing significantly reduced activity.