Osmosis Network Halted Amid Possible $5M Exploit

The Osmosis DEX has been temporarily disabled while developers explore the scope of a liquidity pool attack. Following the discovery of an exploit that may have resulted in the loss of $5 million from liquidity pools, the Osmosis network was shut down by core devs and validators at 02:57 UTC. Osmosis DEX on Cosmos exploited for $5 million as validators halt the network (via @vishal4c)https://t.co/xjdFulDq8c — The Block (@TheBlock__) June 8, 2022 A community member discovered the flaw on the Osmosis subreddit, but the forum’s moderator removed the post. The spot was found when a user deposited money into a liquidity pool and immediately withdrew it. Unintentionally, the withdrawal was valued at 50% more than the deposit. According to Osmosis community analyst RoboMcGobo’s Discord message, the team took 12 minutes to halt the chain once the issue was discovered. 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. More info to come. https://t.co/WOu7MMgSUM — Osmosis 🧪 (@osmosiszone) June 8, 2022 Liquidity Pools Were not Drained Totally Osmosis posted an update on Twitter, saying, “Liquidity pools were not “drained totally.” Developers are attempting to address the bug, estimate the extent of the losses (estimated to be in the $5 million areas), and plan for recovery. More information will be forthcoming.” The Cosmos framework i...