Osmosis Freezes Operations After Nomic Chain Exploit
Osmosis, a prominent decentralized exchange in the Cosmos ecosystem, has suspended key operations for its synthetic Bitcoin asset after an exploit on the Nomic blockchain allowed an attacker to double-spend nBTC. The exchange froze minting, redemption, deposits, and withdrawals for allBTC while moving to contain the damage.
An emergency upgrade managed to lock 22.65 BTC in the attacker's address before the funds could be moved. Approximately 39.84 nBTC were compromised in the incident, meaning more than a third of the asset backing that allBTC holders were counting on was suddenly in question.
The exploit targeted a flaw in Nomic's custom forwarding mechanism, which allowed false vouchers to be created through a double-spend of nBTC. The IBC protocol itself wasn't compromised, and Osmosis's own systems weren't breached directly. The vulnerability lived upstream, on Nomic's side.