Cosmos Project Nomic Exploited for Over 40 BTC Worth of Tokens

The Cosmos-based project Nomic was hit by an exploit on June 25, which allowed an attacker to mint over 40 BTC worth of nBTC out of thin air. It took Osmosis, who also uses the nBTC token, a whole 74 days to notice the issue.

Nomic itself appears not to be actively maintained, with its last commit on GitHub two years ago and no recent activity on its X account.

The attacker combined two separate bugs in Nomic's custom forwarding mechanism to generate a transaction that 'minted 40.650602 BTC of nBTC on Osmosis with no BTC behind it.'

Osmosis was able to freeze the attacker's assets, including 22.65 allBTC, which will be used to cover the shortfall in Nomic's backing.