Osmosis, a decentralized exchange built on Cosmos, was hacked for roughly $5 million, leading to an emergency halt of the entire Osmosis blockchain. Osmosis homepage The major defect that led to the attack was initially revealed by a community member posting on the Osmosis subreddit under the username Straight-Hat3855. "There is a big problem with osmosis," they warned, claiming that adding liquidity to the decentralized exchange and quickly withdrawing it resulted in customers receiving 50 percent more tokens than they had deposited. Other community members began depositing and withdrawing liquidity after expressing doubts about the user's claims, only to discover that the exploit worked exactly as claimed. According to Osmosis, roughly $5 million of the exchange's entire locked value of $212.77 million was drained before the developers suspended the blockchain for emergency maintenance. However, the blockchain's validators responded and organized the emergency halt within 12 minutes of the attack being identified, according to pseudonymous Osmosis senior analyst RoboMcGobo. If the engineers had not halted the chain, malicious users might have continued to use the exploit to drain the exchange’s total liquidity.According to a tweet from the Osmosis official account, the “bug has been identified and a patch written.” “More testing is underway before validators are recommended to coordinate a restart,” the team promised, stating that a complete problem report and action plan would be coming soon. https://twitter.com/osmosiszone/status/1534470729797976064 Approximately an hour after Osmosis' comment on the assault, FireStake, a validator in the Cosmos ecosystem, tweeted that two employees exploited the flaw to the tune of $2 million owing to "a brief lapse in good judgment." When FireStake discovered the flaw, they tweeted to their 1,700 followers that they were "considering [their] family's future." They willingly returned the funds and "put things straight" after confessing to "stressing through the night" about the matter. https://twitter.com/stake_fire/status/1534598315441913856 According to Osmosis co-founder Sunny Aggarwal, the other two hackers involved in the crime made a series of transfers to centralized exchanges, which Aggarwal believed would make it easier to hunt them down. RoboMcGobo reacted to Aggarwal's statements in the project's Discord: “Funds have been linked to CEX accounts. Law enforcement has been notified,” RoboMcGobo wrote. “We’re hopeful that the exploiters will do the right thing here so that aggressive action will not be necessary.” Osmosis is a decentralized exchange in the Cosmos ecosystem and, like other Cosmos SDK chains such as Secret Network, is interoperable with the entire Cosmos ecosystem. According to DeFi Llama data, despite hosting only one decentralized application, Osmosis is the second-largest Cosmos-based blockchain by total value locked. The OSMO token fell around 2.3% in response to the revelation, falling from about $1.19 before the exploit to $1.03 at the time of writing. Understanding How to Safeguard Your Cryptocurrency Against Theft and Hacking The potential security risks associated with owning digital assets may have discouraged some investors from participating in the cryptocurrency market at all. Indeed, as the cryptocurrency market evolves at a breakneck pace, so are the tactics used by cybercriminals to steal tokens. On the other hand, watchful crypto investors can take cybersecurity measures to safeguard their assets, avoid scams, and keep hackers at bay. Wallets Are Essential Many investors buy popular digital currencies, such as Bitcoin or Ethereum, through a crypto exchange and keep the assets on that exchange. Although crypto exchanges have their own security mechanisms in place to prevent theft, they are not immune to cyber-attacks. Investing in a cryptocurrency wallet is one of the best ways to protect your assets. Wallets are classified into two categories i.e.hardware and software wallets. Although new designs are constantly being introduced, hardware devices are the more secure option. Coinbase Wallet Coinbase wallet page Coinbase Wallet is an excellent choice for beginners as it's an easy-to-use and secure wallet supported by a well-known exchange. The app can link to most major bank accounts and offers a friendly and easy-to-use interface with a basic three-tab structure and easily distinguishable functionalities. Coinbase Wallet can hold non-fungible tokens (NFTs) and digital collectibles in addition to over 500 crypto assets. Understanding the difference between the Coinbase exchange and the Coinbase wallet is vital. The Coinbase wallet can be used without registering with the exchange. It's non-custodial, meaning private keys are held on your device rather than on Coinbase's servers; therefore, you don't have to be concerned about your funds being frozen or expo
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