Osmosis said it identified a vulnerability on the Nomic chain that let an attacker double-spend nBTC and send fraudulent vouchers to Osmosis. The protocol said neither Osmosis nor Inter-Blockchain Communication, or IBC, was affected because the flaw was located in Nomic’s custom forwarding mechanism.
According to the disclosure, 39.84 nBTC from the total minted supply sits in Alloyed BTC, accounting for about 36% of its backing. After the issue was discovered, moderation subDAOs halted inflows and outflows for Nomic and Alloyed BTC on Osmosis. Working with validators, they also carried out an emergency upgrade that froze 22.65 BTC in the attacker’s addresses.
Osmosis said it plans to submit a governance proposal to confiscate those assets. It will also ask governance to use BTC accumulated in the community pool to cover the remaining balance and restore full backing for Alloyed BTC.
Osmosis said it has identified a vulnerability on the Nomic chain that allowed an attacker to double-spend nBTC and send fraudulent vouchers to Osmosis, according to an official update cited by BlockBeats on Sept. 9.
The protocol said Osmosis and Inter-Blockchain Communication, or IBC, were not affected because the bug was in Nomic’s custom forwarding mechanism.
Osmosis said 39.84 nBTC from the total minted supply is held in Alloyed BTC, representing about 36% of its backing.
After discovering the issue, moderation subDAOs froze inflows and outflows of Nomic and Alloyed BTC on Osmosis. Together with validators, they executed an emergency upgrade and froze 22.65 BTC in the attacker’s addresses.
Osmosis said it will submit a governance proposal to confiscate those assets and ask governance to use BTC accumulated in the community pool to cover the remaining balance and restore full backing for Alloyed BTC.
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