Cosmos Labs Faces Criticism Over Disclosure Bug Issue, Leading to Recommendations for EVM Chains to Halt Operations
Cosmos Labs Faces Criticism Over Disclosure Bug Issue, Leading to Recommendations for EVM Chains to Halt Operations
A serious security flaw has been discovered in the shared modules that make up the Cosmos EVM infrastructure, resulting in multiple blockchain networks being affected by attacks that exploited this vulnerability.
Specifically, it is believed that vulnerabilities arose from a combination of several upstream defects, including calculation errors in staking processes, such as underflows. Among the affected networks, MANTRA and Nesa were able to prevent direct impacts on user funds through proactive chain halting measures.
On the other hand, KiiChain suffered a loss of approximately 150 million KII, equivalent to about $9 million at the time's theoretical price (around 1.43 billion yen), leading to a collapse in token prices. Additionally, around 3 billion TAC, worth approximately $7.5 million (about 1.19 billion yen), was withdrawn from staking contracts, resulting in significant losses being reported.
Growing Criticism from the Community Regarding Disclosure Practices
In this series of incidents, the most strongly criticized aspect by the security community in the cryptocurrency industry and the affected projects is the information-sharing process of Cosmos Labs, the module developer.
After the situation was revealed, Cosmos Labs urgently recommended the halting of EVM chain operations for the affected networks. However, the disclosure of vulnerability fixes that occurred prior to this was handled in a manner close to a silent patch model (post-fix without public disclosure), which has been criticized as extremely inadequate.
Delayed Response and Future Challenges
According to a verification report published by KiiChain, when a critical patch was made public in mid-August, individual notifications were not sent to the affected chains in advance, and there was insufficient warning regarding the importance of the update. As a result, attackers were able to exploit the vulnerability before the patch was applied, having analyzed the code updates.
It has been pointed out that if clear emergency halting measures had been communicated after prior non-public notifications, the damage could have been minimized. Cosmos Labs plans to submit a detailed incident report, but this case has left significant challenges regarding the coordination and disclosure processes of vulnerability information among infrastructure providers in the industry.
-- Price
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
You may also like

NES token trading resumes on Binance Alpha and Kraken after $286M exploit

NESA Shifts from Opposition to Neutral on CLARITY Act, Clearing a Major Obstacle for Voting

Attacker Steals $50 Million in NES, Only Profits $60,000

Cosmos EVM Module Faces Security Incident, Multiple Chains Affected

NSE Stock Price Debuts Today at a Valuation Higher Than Nasdaq: Here's the Reason
NSE listed today at roughly 43 times earnings higher than Nasdaq, ICE, and Hong Kong Exchanges combined and analysts say investors aren't just pricing the exchange, they're pricing India's growth story.

XRPL to Implement Major Upgrade on October 5: Adding Permission Delegation Feature

Stablecoin 2.0: Who Receives the Interest from Your Stablecoins?

Is Avalanche the ‘Designated’ Tokenization Chain for ICE After a Year of Testing?

Is the 1 Billion POL Burn Just a Joke?

67% of the wealthy own digital assets, but the crypto adoption gap remains huge

Trump-Xi: The 3 Issues Threatening Bitcoin and Cryptocurrencies

48% of Gen Z Finds Emerging Investments Like Cryptocurrency Attractive, US Bank Survey

Solana Dominates Ethereum on Fees, but ETH Maintains Lead on Burn

How to Rewrite Internet Rules When Everyone Has an Indefatigable Agent

Bitwise survey finds 1%-2% crypto allocations dominate

唐华斑竹: Nearly $1 Billion Net Inflow for Bitcoin ETF in a Single Day

Patrick Witt Defends Trump's Crypto Investment Persuasiveness, Points to Bank Lobbyists as the Real Force Behind the Clarity Act

Circle expands CCTP to EURC and cirBTC on Arc

FedNow readies cross-border support for U.S. banks

Bitcoin, Sports, and Politics: Predictive Markets Target $10 Trillion

Exclusive Interview with CK Zheng of ZX Squared Capital: How a Wall Street Risk Control Expert Accurately Grasped Market Trends and Outperformed Bitcoin Returns by Double

The End of the Blank Prompt: Why Trading AI Needs a Playbook

JR Kyushu Enters Financial Sector in Partnership with SBI, From Banking to Cryptocurrency

Bitcoin Pulls Back From $87,000| WEEX TradFi Daily Brief (September 24, 2026)
Bitcoin pulled back from about $87,000 to about $84,000, with Ethereum near $2,680. S&P Global PMI on September 23 ET far exceeded forecasts. The 10-year yield broke above 5.00%, while the 5-year and 30-year touched highs last seen in 2007 and 2004. The S&P 500 and Nasdaq slipped. Energy moved with oil and crypto-treasury stocks followed bitcoin lower. Investors await earnings from COST, BB, and others.

Cardano proposal slashes fees by 55%, but it comes with a cost for small pools

The Evolution of AI: The Boundaries and Truth of Recursive Self-Improvement (RSI)

US Bond Market 'Meltdown'... Why Are Interest Rates Soaring?

Coinbase plans post-quantum Bitcoin custody for any scheme

Treasury’s cash balance nears $1 trillion while Bitcoin awaits a crucial market signal

Aerodrome farming made up 90% of USDC transfers, analyst says
NES token trading resumes on Binance Alpha and Kraken after $286M exploit
NESA Shifts from Opposition to Neutral on CLARITY Act, Clearing a Major Obstacle for Voting
Attacker Steals $50 Million in NES, Only Profits $60,000
Cosmos EVM Module Faces Security Incident, Multiple Chains Affected
NSE Stock Price Debuts Today at a Valuation Higher Than Nasdaq: Here's the Reason
NSE listed today at roughly 43 times earnings higher than Nasdaq, ICE, and Hong Kong Exchanges combined and analysts say investors aren't just pricing the exchange, they're pricing India's growth story.






