Osmosis Says Nomic Chain Attack Triggered nBTC Double-Spend Incident

Osmosis said the Nomic chain suffered an attack that exploited a vulnerability in a custom forwarding mechanism, allowing the attacker to carry out a double-spend attack on nBTC by reusing the same asset to generate fake credentials and send them to Osmosis for redemption. According to Foresight News, Osmosis and the IBC protocol were not affected. Of the nBTC already minted, 39.84 BTC are held in Alloyed BTC synthetic assets, accounting for about 36% of its collateral. After the incident was discovered, Osmosis' governance sub-DAO froze deposits and withdrawals between Nomic and Alloyed BTC, and worked with validators to complete an emergency upgrade that froze 22.65 BTC in the attacker's address. The team said it will submit a governance proposal to confiscate the assets and seek to use BTC from the community fund pool to cover the shortfall and restore full collateral backing for Alloyed BTC.