Osmosis DEX on Cosmos exploited for $5 Million as validators halt the network

1 min

Osmosis DEX on Cosmos exploited for   <b>Million</b> as validators halt the network

Quick Take

Osmosis, a blockchain tech that runs a large decentralized exchange (DEX) in the Cosmos , was halted today.

After a critical bug in its liquidity led to an estimated $5 Million exploit, the core team and the network validators stopped the chain at block #4713064. 

The vulnerability was 1st noted by a user on Reddit who warned in a now-deleted post that if someone added to an Osmosis pool and removed it, the position somehow increased by 50%.

On-chain show that before the network was stopped, users had already begun to exploit the vulnerability to out from Osmosis.  While the exact nature of the vulnerability is  unclear, the Osmosis team confirmed the bug let malicious users drain about $5 Million worth of assets from liquidity pools.

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“Liquidity pools were NOT “completely drained”. Devs are fixing the bug, scoping the size of losses (likely in the range of ~$5M), and working on recovery,” an post from the Osmosis team stated.

Due to the chain halt, the Osmosis DEX and its native wallet remain unusable for the time being. The group is now working to make available a before the network could be restarted. 

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