Osmosis Exchange Lost $5 Million Due to Bug!

On Wednesday, Cosmos-based DeFi exchange Osmosis suspended its network. The reason for this is being told as a possible bug, in which the company has reportedly suffered a loss of about $ 5 million (about Rs 39 crore). The operation was suspended at 02:57 AM UTC (8:27 AM IST) by the platform’s core developers and validators. A community member in the Osmosis subreddit already alerted the company about the bug that caused the breach.

Coindesk’s accordingThe company came to know about this bug when a user deposited funds in a liquidity pool before withdrawing immediately. The value withdrawn by the user was 50% more than the money put in. This is being reported as a system error. The report cited Osmosis community analyst RoboMcGobo as noting that the team took 12 minutes to halt the blockchain after the breach was discovered.

User Discord Post wrote in “I cannot speculate about the cause of the bug, an ETA on chain restart, or the pools that were affected, as we are yet to [इसके बारे में] Don’t know.” Osmosis also confirmed the bug, raising the possibility that the bug could drain about $5 million from the liquidity pool.

Osmosis wrote on Twitter, (translated) “Liquidity pool not ‘fully drained’. Developers are fixing bugs, reducing damage size (in the range of ~$5M), and working on recovery Doing. More details to come.”<!–

–>

//platform.twitter.com/widgets.js