Osmosis Network Halted by Team; Here's What Happened

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Osmosis Network Halted by Team; Here's What Happened
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Cosmos-based osmosiszone halted as critical bug found; $5 million lost Osmosis $OSMO $ATOM

At around 3:00 p.m. UTC, users started to explore this bug en masse. Namely, the USDC-OSMO pool was affected. An initial estimation suggests that losses exceed $2.5 million before the network's team decided to halt the blockchain.

All operations were stopped at block #4713064"for emergency maintenance." Most likely, the vulnerability occured in the v9 Nitrogen upgrade of Osmosis DEX codebase.At 7:00 a.m. UTC, the team of the network confirmed that the attack occurred and unveiled that the protocol has been drained for almost $5 million. The attackers thus failed to siphon all liquidity from Osmosis DEX pools.

By press time, the team started closed testing of the blockchain; validators should be ready for the announcement of a restart coordination plan.Decentralized cryptocurrency exchange Osmosis is one of the first mainstream projects of the Cosmos Hub. It was launched in mainnet in mid-February 2021; its team also pioneered"superliquid staking" concept.

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