Cosmos Fixes Major IBC Security Flaw, Safeguards $126M

Cosmos developers have successfully addressed a significant security flaw in the Inter-Blockchain Communication (IBC) protocol that put assets worth over $126 million at risk. Asymmetric Research first identified the Vulnerability and notified the developers. 

This flaw had been part of the protocol since its launch in 2021 but only became a risk with recent updates to the codebase. Fortunately, the issue was resolved before any funds were compromised.

The critical bug had the potential to allow a reentrancy attack, which could enable hackers to create an unlimited number of tokens on IBC-linked chains such as Osmosis and other decentralized finance platforms within the Cosmos network. The reinforcement for this vulnerability was implemented three weeks ago by Cosmos developer Carlos Rodriguez.

Asymmetric Research has stressed the importance of ongoing research and development to strengthen security across multiple blockchain systems. This proactive approach is vital to safeguarding the multichain ecosystem from similar threats in the future, ensuring the integrity and reliability of cross-chain transactions.

Also  read: Investor loses $180k in USDC & ANDY Tokens in phishing Scam