Osmosis, a blockchain tech that runs a large decentralized exchange (DEX) in the Cosmos ecosystem, was halted today.
On-chain transactions show that before the network was stopped, users had already begun to exploit the vulnerability to siphon funds out from Osmosis. While the exact nature of the vulnerability is still unclear, the Osmosis team confirmed the bug let malicious users drain about $5 Million worth of assets from liquidity pools.
“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 official 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 patch before the network could be restarted.
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