Cosmos news

Cosmos Hub resumed block production after a Sept. 8 outage, but Ledger users still cannot view or send ATOM as of Sept. 13, according to Ledger's status page. The wallet service remains down while the network operates normally, with no cause or restoration time provided. QuickNode reported its nodes back at the chain tip by Sept. 9, but Ledger's incident persists. Users needing urgent access can use third-party interfaces like Keplr with their Ledger device, but must never import the recovery phrase into software. Monitoring Ledger's status page is advised for updates.

Circle is winding down USDC support on Noble, forcing Cosmos to migrate its primary stablecoin route to Injective. The transition affects roughly $92 million in USDC and requires exchanges, protocols, wallets, and over 50 chains to update integrations. Circle will stop minting new USDC on Noble on Oct. 13, with redemptions available until Jan. 12, 2027. Cross-chain exits tighten from Oct. 31, and USDC left in pools or contracts may miss Circle's January redemption backstop. Cosmos Labs has coordinated a replacement route through Injective, where Circle already issues native USDC. Users can migrate Noble-based USDC (USDC.n) to Injective-issued USDC (USDC.inj) via Skip:Go starting Sept. 11. The migration is a test of whether Cosmos can move its stablecoin system without splintering liquidity.

Injective has launched native USDC on its mainnet via Circle's Cross-Chain Transfer Protocol (CCTP), and the Cosmos ecosystem has adopted it as the canonical stablecoin standard. This follows Noble's exit from USDC issuance in 2026, which left a gap of over $100 million in stablecoin supply. Cosmos Hub, dYdX, and routing layer Skip:Go have all integrated Injective USDC, with dYdX being the first major chain to do so, processing over $4 billion in monthly derivatives volume on this single rail. The integration uses Injective's MultiVM Token Standard, allowing the same USDC balance to work natively across EVM and Cosmos/Wasm environments without bridging. Transaction fees from Injective USDC activity will fund programmatic buybacks of ATOM, creating a direct economic link between stablecoin usage and Cosmos Hub's token value. Cosmos Hub and dYdX have committed to a minimum four-year adoption window, signaling long-term infrastructure rather than a temporary fix. This move extends Circle's CCTP strategy into the Cosmos ecosystem, reducing fragmentation and risks for institutional players. However, it introduces concentration risk, as Injective now controls critical infrastructure for the entire ecosystem, with potential blast radius if issues arise.

Cosmos has launched a 17-company partner network to help banks move tokenization projects from pilot phases into production. The network includes qualified providers covering custody, compliance, security, infrastructure, and systems integration. Wells Fargo plans to use the Cosmos Tokenization Suite for a cross-border tokenized-deposit rollout in fall 2026. The partner network is a pre-vetted ecosystem, not a pre-integrated marketplace. Banks must negotiate separate contracts with each provider and retain full responsibility for compliance decisions. Cosmos supplies the ledger and tokenization platform, while partners offer supporting services. The network aims to accelerate implementation by removing the vendor discovery burden. Cosmos plans to address ledger fragmentation using the Inter-Blockchain Communication Protocol (IBC) to connect separate bank networks. However, Barak noted that technology alone does not solve fragmentation; industry alignment on compliance, liquidity, and settlement standards is still needed.

Cosmos launched a 17-member Partner Network on Sept. 9 to help financial institutions move tokenized deposits and digital asset services from trials to production. The initial partners include BitGo, Galaxy Digital, OpenZeppelin, Blockchain.com, Blockdaemon, and others, covering custody, compliance, security, and blockchain infrastructure. Cosmos will provide its Tokenization Suite, while partners supply specialized services like custody, verification, and monitoring to reduce vendor-coordination complexity for banks. The network targets use cases such as tokenized deposits, 24/7 settlement, programmable escrow, trade finance, and agentic commerce. Cosmos claims its technology supports over 150 blockchains securing more than $70 billion in assets, but no participating banks or production deployments have been named yet. Commercial terms and integration details for partners remain undisclosed. The success of the network will depend on converting partnerships into live customer-facing banking products.

Cosmos Labs disclosed that attackers exploited a critical Cosmos EVM vulnerability across six blockchain networks between Aug. 20 and Aug. 25, converting stolen tokens into about $5.72 million in assets. The flaw, an integer underflow in the Ethereum-compatible framework, was first reported in April but was initially deemed not to affect production networks, leading to a silent patch. Patched versions were released on Aug. 19 without a vulnerability-specific advisory, and the first attack began about 20 hours later. MANTRA suffered the largest disclosed loss, with 720.9 million tokens worth about $3.6 million taken from its burn address and a dormant multisig wallet. The network halted for roughly 30 hours before validators resumed block production with patched software. TAC and KiiChain were also attacked using the same method, with nearly 3 billion TAC and approximately 148 million KII stolen. Three other chains were exploited, though only one, Nesa, was publicly identified. Cosmos Labs coordinated with 40 networks, helping 13 patch or halt before being attacked.

Cosmos Labs disclosed in a post-mortem that it wrongly cleared a critical vulnerability in Cosmos EVM, which was exploited between Aug. 20 and Aug. 25 to steal funds across six blockchain networks, totaling about $5.7 million. The bug, an integer underflow, allowed attackers to inflate token balances. Cosmos Labs had received a report of the flaw in April but did not reproduce it on live networks, leading it to apply a silent, public patch in May rather than a private distribution. The first attack occurred about 20 hours after the public release, with a third-party public disclosure of the exploit path preceding it. Attacker exchange accounts have been frozen. Affected chains include MANTRA, TAC, KiiChain, and possibly Nesa. MANTRA lost 720.9 million tokens and halted for over 30 hours. KiiChain criticized Cosmos Labs for not issuing an immediate halt instruction. No funds have been recovered. Cosmos Labs noted it lacks a full registry of Cosmos EVM chains and discovered 11 previously unknown deployments. The firm described the public disclosure of the exploit path by a downstream developer as highly unusual. MANTRA is being acquired by Inveniam Capital Partners.

A Cosmos EVM vulnerability, initially deemed low-risk, was exploited across six networks on Aug. 28, resulting in the theft of nearly $6 million. Cosmos Labs had received the report on April 25 but judged it not to threaten production chains, applying a silent patch instead of an emergency fix. The assessment changed in early August, prompting patched releases, but attackers had already begun exploiting the flaw on MANTRA, TAC, and KiiChain. Following the attacks, Cosmos Labs contacted 40 networks, with 13 potentially exposed chains patching or halting. MANTRA suffered the largest hit, with 720.9 million tokens moved from inert addresses, valued at roughly $3.6 million. The incident has pushed Cosmos Labs to revise its vulnerability triage and disclosure procedures.

An attacker exploited a vulnerability in Cosmos EVM to mint 200 times their initial balance of Nesa (NES) tokens, moving $50 million off the chain. However, due to extreme slippage and vanishing liquidity, the actual profit was only about $60,000, according to blockchain analytics firm Bubblemaps. Cosmos Labs disclosed the incident on August 24, advising affected chains to halt and upgrade to patched versions. The vulnerability has not been named, and an incident report is promised. Four networks have reported issues, including KiiChain, Nesa, MANTRA, and TAC, with KiiChain suffering 18 repeated attacks.

Cosmos Labs has confirmed an ongoing security incident affecting users of the Cosmos EVM module, advising affected chains to halt block production. Three networks have disclosed impact: MANTRA, KiiChain, and TAC. MANTRA resumed operations after fixing the vulnerability in version 8.4.0, reporting no user funds were affected. KiiChain said an attacker drained 148.3 million KII tokens using the same technique 18 times before validators halted the chain at block 9355723. The network remains paused, with a coordinated binary upgrade planned to resume. TAC halted at block 24,671,475 after a single account was drained. Both teams stated the defect lies in the shared Cosmos EVM module, not their specific code. Cosmos Labs has yet to release an incident report or describe the root cause.