Ostium has released an update on the attack that hit its liquidity provider vault on July 15, saying the incident resulted in a loss of 23,752,746 USDC. According to the project’s preliminary findings, the attacker compromised the offchain infrastructure that supplied price data to the protocol, then submitted disguised malicious price reports. Using those reports, the attacker rapidly opened and closed multiple large positions and extracted artificial profits from the vault. The project said trader collateral was not affected because it is held in separately isolated smart contracts, and all trading positions remain open. Ostium added that it paused trading and froze all trading contracts within 60 minutes of the first malicious trade. The team is now working with Mandiant, zeroShadow, Collisionless, SEAL 911, and law enforcement, while also coordinating with trading venues, bridge contracts, and stablecoin issuers. Ostium said its engineering team is focused on remediation and infrastructure hardening before trading resumes. The protocol also said it will provide at least 24 hours’ notice before unfreezing trading contracts, and existing positions will be marked at the reopening price rather than prices recorded during the trading halt.
Ostium said its liquidity provider vault was attacked on July 15, resulting in a loss of 23,752,746 USDC.
In a preliminary update, the project said the attacker compromised the offchain infrastructure responsible for supplying price data to the protocol and submitted disguised malicious price reports. It said the attacker then rapidly opened and closed multiple large positions to extract artificially created profits from the vault.
Ostium said trader collateral was stored in separate isolated smart contracts and was not affected by the incident. All trading positions remain open, according to the team.
The protocol said it paused trading and froze all trading contracts within 60 minutes of the first attack transaction.
Ostium said it is working with Mandiant, zeroShadow, Collisionless, SEAL 911, and law enforcement, while also coordinating with trading platforms, bridge contracts, and stablecoin issuers as the investigation continues.
The engineering team is focused on fixing and strengthening the related infrastructure to support a safe return to trading, Ostium said. The project added that it will give at least 24 hours’ notice before unfreezing trading contracts.
Once trading resumes, existing positions will be marked at the reopening price and will not be affected by price moves during the pause. Ostium said supporting affected liquidity providers and restoring trading safely remain its top priorities.
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