Cosmos EVM Chains Halt Operations Following Security Breach

The security incident came to light after several projects reported irregular activity within their networks. KiiChain suffered the most significant disclosed impact, losing 148,326,583.15 KII tokens across 18 separate attacks on August 22. Similarly, the TAC network halted at block 24,671 after an exploit drained a single account, while MANTRA resumed operations only after a 30-hour shutdown to patch its Cosmos EVM module.

Cosmos Labs remains tight-lipped regarding the specific nature of the vulnerability, declining to name every affected chain or provide an aggregate loss estimate. By requesting a coordinated halt among validators, the company aims to stop the exploiters before they can drain additional liquidity. This cautious approach prevents the publication of specific mitigation steps that could inadvertently guide attackers toward remaining vulnerabilities. The situation echoes a March advisory involving the ICS20 precompile, which previously resulted in a $7 million loss on SagaEVM, though developers have yet to confirm if the current wave of attacks shares that same root cause.