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 Additionally, around 3 billion TAC, worth approximately $7.5 million (about 1.19 billion yen), was withdrawn from staking contracts, resulting in significant losses being reported.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

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

TOP Crypto AI 2026: Why Comparing Qubic, TAO, Render, FET and NEAR by Price No Longer Makes Sense

Castle lets users convert STRC dividends into Bitcoin

Bitcoin could get the dollar drop bulls want this week without getting the liquidity rally they need

Altcoin Market Drops 58% Since Peak, Anonymous Cryptos Gain 213%

Turbulent Market, Preserved Capital: The Video of Steady Lads' First Anniversary is Here!

Used Car Prices in September 2026: How Much Do the Most Sought-After Models Cost?

MIT Study Warns of Extreme Gaps in Food, Water, and Energy by 2050

Proteomic clocks link accelerated aging to higher risk of death and disease

Qatar Faces Record Quarterly Deficit Since 2016 Following LNG Collapse

Response to Labor Shortage: How Artificial Intelligence is Transforming Ukrainian Business

Innovation Week 2026: AI to be Discussed in 41 Activities

Joe Biden's Son's LAPTOP Memecoin Shunned Before Its First Trade

Kalshi court split could fragment US prediction markets: expert

Wholesale dollar falls below $1.510 and the gap with the ceiling of the band holds at 25%

Tether AI Wallet Spending Limits, WDK Leaves Responsibility to Developers

ETF Flows: How to Read Inflows and Outflows of Capital in Cryptocurrency Funds

Arthur Hayes: Dollar Weakness and Yen Strength Transition Triggering Cryptocurrency Rally

European Funds Leave the US: A Chance for France and Bitcoin?

Nansen becomes first front end to support Outcome.xyz HIP-4 markets

Treasury Bonds: The Darkest Performance in Over 200 Years Reveals a New Paradigm

ChatGPT, Claude, and Grok All Go Down: Why Is Everyone Suspecting Cloudflare?

Changpeng Zhao: Kyrgyzstan has made a leap to become a crypto hub in just one year, a process that usually takes up to 9 years

Weekly Net Purchases by Listed Companies Decrease by 48%, Strategy Did Not Increase Bitcoin Holdings Last Week

Weekly Net Purchases by Listed Companies Decrease by 48% as Strategy Holds No Bitcoin

Credit in pesos falls again: consumption declined in August and delinquency continues to pressure

Web3 August Security Report: 29 Major Security Incidents Resulting in Over $68.29 Million in Losses








