Ostium Repays 3,321 Wallets After July Security Incident
Ostium Labs has made significant progress in recovering from its July security incident. The protocol repaid 3,321 wallets that lost funds in full, leaving 345 affected wallets with a term sheet outlining their recovery options.
The breach occurred on July 15, when an attacker infiltrated Ostium's off-chain infrastructure and submitted fraudulent BTC-USD price reports, tricking the protocol into releasing USDC it shouldn't have. This resulted in 23,752,746 USDC being transferred out of the system.
Ostium Labs has committed to contributing from its own balance sheet to cover losses for affected liquidity providers. The remaining 345 wallets received a term sheet on August 29 outlining their options. However, a parallel legal battle over a $15 million USDC loan default adds pressure to Ostium's financial resources.