Cosmos Labs Acknowledges Error, Attacks Affected Six Blockchains

Cosmos Labs reported an incident involving Cosmos EVM. The cause was incorrect risk assessments in the module, leading to the exploitation of a vulnerability against six blockchains with a total damage of $5.7 million. The issue was identified on April 25, 2026, but the team decided that the networks were not at risk and released a fix without warning. In early August, independent researchers confirmed that the vulnerability affected all networks on Cosmos EVM. The attack began 20 hours after the update. The attacker used a malicious contract to manipulate balances. The affected networks were MANTRA, TAC, and KiiChain, with losses of 720.9 million MANTRA, 2.99 billion TAC, and 148.3 million KII respectively. MANTRA ceased operations on August 20, 2026, while TAC sold part of its tokens on BNB Chain for $950,000. The network teams criticized the short timeframe for implementing the fix and the lack of warnings. The incident is part of a broader issue: from January 2025 to July 2026, crypto platforms lost $3.63 billion in 245 incidents.

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