Decentralized peer-to-peer blockchain Osmosis has lost $5 million in an exploit, prompting its developers to stop the chain at block number 4713064.
The bug that caused the exploit was identified by a user on Reddit who cautioned that when funds were deposited to the pools and withdrawn, the position increased by half the amount.
The Osmosis team affirmed that the bug enabled some users to siphon about $5 million in assets. The activities of the malicious users were confirmed from on-chain transaction data.
The network has reported that all funds from the liquidity pools were not completely withdrawn and that the developers were fixing the problem.
Osmosis is a blockchain that offers a decentralized exchange in the Cosmos network, and its native wallet remains unusable currently. The development team seeks to issue a patch before the protocol is restored.
Source: Twitter
Liquidity pools were NOT "completely drained".
— Osmosis 🧪 (@osmosiszone) June 8, 2022
Devs are fixing the bug, scoping the size of losses (likely in the range of ~$5M), and working on recovery.
More info to come. https://t.co/WOu7MMgSUM
