Osmosis has been one of the prominent names in the crypto industry. In the last few years, they have emerged as proper crypto investing option. However, the company has been plagued with security concerns in recent years. The rising popularity of crypto has caused a significant spike in security concerns among the companies as well as the investors. Hackers are coming up with new ways to rip off companies and investors.
Osmosis encountered a similar security breach recently. They had lost $5m worth of money recently due to an attack from the hackers. The incident is suspected to have happened due to a bug in the network of the company. The hackers exploited the bug and got inside the company vault. However, the company did manage to salvage some of the lost money back from the hackers. However, only $2million was being restored. Due to the sudden breach in security, the company had to suspend all its activities from 3:00 am EST. Investors had a significant delay in getting access to their investments and coins. The sudden outage in services resulted in a lot of confusion in the market. Let us learn more about the story in detail below.
Osmosis Looted By Attackers
Osmosis suffered a huge setback as they were robbed of $5million by the hackers. The bug in their system was brought to light initially by a user on Reddit. He stated that the company is allowing a user to increase their LP by as much as 50%. They could do this by simply adding or removing liquidity.
The post was deleted shortly but it could not prevent the damage. The attackers immediately pounced on the bug and laundered a huge sum of money.