Current outcome
Osmosis has frozen 22.65 allBTC via emergency upgrade; allBTC remains ~36% unbacked; governance proposal seeks to fill the 40 BTC shortfall.
Progress timeline
2 material updates- #01
Osmosis freezes 22.65 BTC after Nomic forwarding bug compromises Bitcoin reserves
Osmosis froze 22.65 BTC after a flaw in Nomic's forwarding system enabled false-voucher minting of nBTC, leaving roughly 36% of allBTC's backing invalid and minting/redemption paused pending governance action.
Source evidence: CryptoSlate
- #02
Osmosis took 74 days to discover 40-BTC Nomic exploit
Newly disclosed: exploit occurred June 25; attacker used two bugs to mint 40.650602 BTC of unbacked nBTC; detection took 74 days; attacker cashed out ~$1M via 671 ETH to Tornado Cash; governance proposal would seize frozen 22.65 allBTC, cancel USDC.noble liquidity re-deployment, and pull Community Pool allBTC to fill the 40 BTC shortfall.
State after update: Osmosis has frozen 22.65 allBTC via emergency upgrade; allBTC remains ~36% unbacked; governance proposal seeks to fill the 40 BTC shortfall.
Source evidence: Protos