Osmosis freezes 22.65 BTC after Nomic exploit

Osmosis said an nBTC double-spend exploit occurred on Nomic, a proof-of-stake network that supports Bitcoin transfers to other blockchains. According to Osmosis, 39.84 nBTC tied to the exploit was included in Alloyed BTC, accounting for about 36% of that asset’s collateral. Osmosis halted deposits and withdrawals for Nomic and Alloyed BTC and froze 22.65 BTC in the attacker’s address. The platform plans to propose to governance a measure to cover the shortfall through confiscating the assets and deploying BTC from the community pool. Osmosis added that neither it nor Inter-Blockchain Communication, or IBC, was compromised, and the vulnerability stemmed from Nomic’s native transfer function.