Nomic Chain exploit enabled nBTC double-spending, affecting 39.84 nBTC (36% of Alloyed BTC backing); Osmosis paused transfers and froze 22.65 BTC pending governance approval to seize attacker funds.
Security & Exploits ·
A vulnerability in Nomic Chain enabled an attacker to double-spend nBTC and forward fraudulent vouchers to Osmosis. The exploit affected 39.84 nBTC, equivalent to roughly 36% of Alloyed BTC's backing, though Osmosis and the IBC protocol itself remained uncompromised.
In response, Osmosis halted inflows and outflows of the asset and deployed an emergency upgrade that immobilized 22.65 BTC held in the attacker's address. The protocol now intends to pursue governance approval to seize those frozen funds and replenish the reserve using BTC from its community pool.
The timeline for implementation and the specific mechanics of the backing restoration remain unclear pending community vote results.