Osmosis (allBTC / Nomic Bridge Double-Spend)
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Summary
In September 2026, Osmosis, a Cosmos-based decentralized exchange, froze minting, redemption, deposits and withdrawals of its alloyed Bitcoin token (allBTC) after discovering that a double-spend flaw in the Nomic chain's Bitcoin-forwarding mechanism had allowed an attacker to mint tens of millions of dollars in unbacked nBTC months earlier. On-chain analysis traced the exploit's origin to June 25, 2026, with the shortfall (roughly 36% of allBTC's backing) only disclosed publicly on September 9-10, 2026 — a disclosure gap of about 74 days during which allBTC continued trading and was represented as fully Bitcoin-backed. Osmosis says its own chain and the IBC protocol were not directly compromised and has proposed a governance-driven remediation using seized attacker funds and community-pool Bitcoin, but as of this writing the fix remains a pending proposal rather than a completed restoration.
Connected Entities
1 entitiesTimeline(6 events)
June 2022
Osmosis suffers a separate, unrelated ~$5 million exploit due to a liquidity-pool share-calculation bug; validators halt the chain within minutes to limit losses.
DecryptJune 2026
Alleged origin of the Nomic double-spend exploit: an attacker mints approximately 39.84-40.65 nBTC with no real Bitcoin backing by exploiting a flaw in Nomic's custom Bitcoin-forwarding mechanism, per on-chain researcher Rarma's trace and Osmosis's own governance proposal.
Protos / BlockfenceJuly 2026
Additional exploit-linked activity identified: a balance of approximately 22.65060846 allBTC tied to the exploit is reported to have sat unmoved in the attacker's address from this date.
On-chain trace by researcher Rarma, reported via Protos/BlockfenceSeptember 2026
Nomic chain halts, triggering a backing check that exposes the shortfall in allBTC's Bitcoin reserves.
ProtosSeptember 2026
Osmosis publicly discloses the Nomic double-spend exploit and pauses allBTC deposits, withdrawals, minting and redemption; an emergency chain upgrade freezes 22.65 BTC at the attacker-controlled address.
CryptoSlate / CryptoTimesSeptember 2026
Osmosis puts forward a governance proposal to seize the frozen 22.65 BTC and use community-pool Bitcoin to cover the remaining ~17.19 BTC shortfall in allBTC's backing.
PANewsmodel: claude-code-investigator
generated: 9/14/2026, 11:24:06 PM
last updated: 9/15/2026, 6:42:09 AM
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