- The Osmosis chain is going to be halted for at least 48 hours after a liquidity exploit led to an estimated loss of $5 million. The Osmosis team shared the information on their Twitter and Discord channels.
- The Osmosis team also said that it will cover all the losses using its strategic reserves. Further revealing that a “small number of individuals” exploited the bug.
- The bug was in the JoinPoolNoSwap function. The liquidity providers received 50% more than they should have done at the time of withdrawal from liquidity pools.
The following liquidity exploits led to an estimated loss of $5 million, the Osmosis chain is going to be non-functional for at least 48 hours.
The information was shared by the Osmosis team on their Twitter and Discord Channel. The team further said that using its strategic reserves, it will cover all its losses.
The JoinPoolNoSwap function had an issue. Basically, the liquidity providers got 50% more than they should have done at the time of withdrawal from liquidity pools.
“A small number of individuals” exploited the bug, revealed the Osmosis team. Four individuals have been held responsible for 95% of the exploited amount.
RoboMcGobo, community analyst at Osmosis noted on the Discord channel while giving reference to the centralized crypto exchange that the Funds have been linked to CEX accounts. The analyst further wrote that the law enforcement has also been informed. Further, RoboMcGobo said that they are hopeful that the explorers are going to do the right thing therefore the aggressive action will not be mandatory.
For the uninitiated, Osmosis is a blockchain that is built on Cosmos and is majorly known for its decentralized exchange. The exchange too was stopped when the chain halted.
At the time of writing, the Osmosis token (OSMO), traded thinly on MEXC, was trading at 1.07 USD, up 0.75% in the last 24 hours, according to the data from CoinMarketCap.
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Source: https://www.thecoinrepublic.com/2022/06/09/osmosis-team-assures-will-recover-5m-exploit-loss-chain-to-remain-functional-for-2-days/