Privacy blockchain technology Namada lost nearly $600,000 in an exploit, wiping nearly all of the value from its multi-asset protected pool and adding to a string of security failures across the Cosmos ecosystem this year.
Namada confirmed the violation on June 20, at A post published on XNoting that her team is “investigating the matter” and engaging the parties concerned.
The project also made a plea to the hacker to return the funds, writing: “If you are the white hat hacker behind this exploit, please contact us.”
What happened to Nmada after the hack?
The protected pool that was attacked is known as the Multi-Asset Protected Pool (MASP), which is Namada’s core privacy feature and is designed to allow users to hold and transfer multiple types of tokens with cryptographic balances.
In the wake of exploitation, Total Namada Value Locked (TVL) It crashed from around $600,000 to just $598 within a day.
Also, Namada’s block explorer appears to be down with the most recent block indexed dating back to June 7th. This has raised questions about the chain’s data infrastructure and whether it was functioning normally before the attack.
Is there a growing wave of attacks targeting the Cosmos ecosystem?
The Namada exploit came hours after a separate incident with the underground network, involving one of the attackers $4.67 million of Axelar Bridged tokens drained By exploiting the missing verification check in the cross-chain smart contract.
The exploited vulnerability has been present, and unpatched, in published code since March 2023, according to blockchain security firm Common Prefix.
Ed, L Founder of AirdropGlideAppposted on
Security researcher fr1ko.eth He noted that in the 24 hours ending June 20, both Namada and mySwap (the Starknet-based DEX platform) were hacked, with the two hacks totaling about $900,000.
The security failures exacerbate what was already a difficult year for the Cosmos ecosystem.
saw the network Project displacement Late last year, and continuing into the new year, Cryptopolitan reports.
Noble, a stablecoin infrastructure project that has processed billions of dollars, left Cosmos to the EVM-based first layer.
Penumbra, a privacy-focused chain, has shut down completely. Comdex, Kujira and Evmos have halted development, while projects including Omniflix, Elys and Jackal have moved elsewhere.
Cosmos’ native token, ATOM, is currently trading at around $1.78 and is in the depths of a decline of over 96% from its all-time high achieved in 2021.
The universe is not oblivious to events and has taken steps to stabilize it. In June, Cosmos Laboratories Acquired Mintscan blockchain explorer It opened a subsidiary in Seoul to consolidate operations around Cosmos Hub, Skip:Go, IBC Eureka, and Mintscan under one roof, Cryptopolitan reports.
Leadership also indicated plans to redesign ATOM tokens and pursue enterprise use cases.
But frequent cross-chain exploits associated with Cosmos undermine this effort. Bridge and smart contract vulnerabilities have been a persistent weakness that has plagued the ecosystem.
Does this exploitation call into question Namada’s credibility?
Namada launched with an unusual token structure that was not popular before any exploit occurred.
On-chain investigator ZachXBT noted in August 2024 that the NAM token charged 100% of the supply opened at its token creation event, with no holds for the team’s 18.5% allocation or 32% investor stake.
At the time, ZachXBT wondered how participants would stay motivated to build “when there is a race to get rid of all the tokens from day one.”
With the latest exploit, users now face limited visibility into what happened and what, if anything, remains recoverable.
Team Namada has not released a post-mortem report or update on when it will restore services as of press time
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