Cosmos EVM security breach prompts network pauses

Cosmos Labs reported a security breach in its EVM module, urging all connected chains to pause operations. Major exploits led to $7.5M stolen from TAC and $8.5M from Term Labs. A full incident report is pending.

Cosmos Labs has reported an ongoing security incident involving its Cosmos EVM module, prompting urgent advisories for all connected EVM chains to pause validator operations while the situation is investigated. The vulnerability has resulted in major exploits, including a $7.5 million theft from the TAC blockchain and an $8.5 million loss at Term Labs protocol, both attributed to the Cosmos EVM module. MANTRA Chain also halted its network after detecting a similar exploit, though it reported no impact to user, exchange, or partner funds. Cosmos Labs has not yet disclosed the full scope of affected assets or chains but has committed to releasing a detailed incident report once the issue is resolved. The incident has caused a sharp decline in Cosmos token trading activity, underscoring the broader market impact when core blockchain infrastructure is compromised. Teams using Cosmos EVM are encouraged to contact Cosmos Labs for support as investigations continue.