{"id":13045,"date":"2026-09-10T09:34:25","date_gmt":"2026-09-10T09:34:25","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=13045"},"modified":"2026-09-10T09:34:25","modified_gmt":"2026-09-10T09:34:25","slug":"osmosis-freezes-22-65-btc-after-nomic-forwarding-bug-compromises-bitcoin-reserves","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=13045","title":{"rendered":"Osmosis freezes 22.65 BTC after Nomic forwarding bug compromises Bitcoin reserves"},"content":{"rendered":"<p><\/p>\n<div data-cs-editorial-quote-scope=\"\" data-cs-image-viewer-scope=\"\" data-single-article-content=\"\">\n<p>Osmosis has frozen 22.65 BTC after a flaw in Nomic\u2019s custom forwarding system allowed a double-spend that left the allBTC asset partly unbacked by Bitcoin.<\/p>\n<p>allBTC is issued against a basket of Bitcoin variants held on Osmosis, including nBTC from the Nomic bridge. The official allBTC dashboard showed 110.57 allBTC in circulation and 39.84 nBTC in the basket at the reporting cutoff.<\/p>\n<figure id=\"attachment_561393\" aria-describedby=\"caption-attachment-561393\" style=\"width: 720px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-561393\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-2ed5bffd-13b3-480f-b4cd-2e94adc11aee.png\" alt=\"Decision flow showing the Nomic forwarding flaw, paused allBTC functions, governance choices and holder exposure\" width=\"720\" height=\"900\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-2ed5bffd-13b3-480f-b4cd-2e94adc11aee.png 1122w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-2ed5bffd-13b3-480f-b4cd-2e94adc11aee-240x300.png 240w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-2ed5bffd-13b3-480f-b4cd-2e94adc11aee-819x1024.png 819w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-2ed5bffd-13b3-480f-b4cd-2e94adc11aee-768x960.png 768w\" sizes=\"(max-width: 720px) 100vw, 720px\"\/><img decoding=\"async\" class=\"lazyload wp-image-561393\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-2ed5bffd-13b3-480f-b4cd-2e94adc11aee.png\" alt=\"Decision flow showing the Nomic forwarding flaw, paused allBTC functions, governance choices and holder exposure\" width=\"720\" height=\"900\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-2ed5bffd-13b3-480f-b4cd-2e94adc11aee.png 1122w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-2ed5bffd-13b3-480f-b4cd-2e94adc11aee-240x300.png 240w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-2ed5bffd-13b3-480f-b4cd-2e94adc11aee-819x1024.png 819w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-2ed5bffd-13b3-480f-b4cd-2e94adc11aee-768x960.png 768w\" data-sizes=\"(max-width: 720px) 100vw, 720px\"\/><figcaption id=\"caption-attachment-561393\" class=\"wp-caption-text\">Infographic traces allBTC\u2019s recovery path from Nomic forwarding failures through paused activity and governance decisions over frozen Bitcoin and reserve backing.<\/figcaption><\/figure>\n<p>Osmosis said the nBTC was created from false vouchers, putting 36.03% of allBTC\u2019s backing in question and leaving about 70.73 BTC-equivalent of other backing.<\/p>\n<p>The statement also noted that neither its chain nor the Inter-Blockchain Communication protocol was compromised, and t<span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">he bug was in Nomic\u2019s forwarding logic<\/span>.<\/p>\n<p>SlowMist\u2019s incident database also described the event as a Nomic bridge double-spend.<\/p>\n<aside id=\"cs-inline-newsletter-1\" class=\"cs-inline-newsletter\" data-inline-newsletter=\"\" data-newsletter-placement=\"article-midpoint\" data-newsletter-pending-label=\"Joining\u2026\" data-newsletter-pending-status=\"Joining the Daily Brief\u2026\" data-newsletter-email-required-message=\"Before sending, please provide your email address.\" aria-labelledby=\"cs-inline-newsletter-1-title\" aria-describedby=\"cs-inline-newsletter-1-copy\">\n<div class=\"cs-inline-newsletter__inner\">\n<div class=\"cs-inline-newsletter__content\"> <span class=\"cs-inline-newsletter__eyebrow\"> <i class=\"fa-regular fa-envelope\" aria-hidden=\"true\"\/> The Daily Brief <\/span><\/p>\n<h2 id=\"cs-inline-newsletter-1-title\" class=\"cs-inline-newsletter__title\">The signal, before the noise.<\/h2>\n<p id=\"cs-inline-newsletter-1-copy\" class=\"cs-inline-newsletter__copy\">Start your day with the crypto stories moving markets, decoded by CryptoSlate\u2019s editors.<\/p>\n<\/div>\n<div class=\"cs-inline-newsletter__form-shell\">\n<p class=\"cs-inline-newsletter__form-heading\">One email. Everything that matters.<\/p>\n<p id=\"cs-inline-newsletter-1-privacy\" class=\"cs-inline-newsletter__privacy\">Free to join. Unsubscribe any time.<\/p>\n<p> <i class=\"fa-regular fa-circle-xmark\" aria-hidden=\"true\"\/> <span>Whoops, looks like there was a problem. Please try again.<\/span><\/p>\n<p> <i class=\"fa-regular fa-circle-check\" aria-hidden=\"true\"\/> <span><strong>You\u2019re on the list.<\/strong> Your next Daily Brief is on its way.<\/span><\/p>\n<\/div>\n<\/div>\n<\/aside>\n<p>The public disclosure came more than two months after the apparent exploit activity. On-chain researcher Rarma traced the principal minting to June 25 and said 22.65060846 allBTC created during July 17 activity remained unmoved when the trace was published.<\/p>\n<p>Nomic and allBTC inflows and outflows have been frozen, while allBTC minting and redemption are paused. Those restrictions block entry and exit through the affected functions while the backing gap remains unresolved.<\/p>\n<div class=\"cs-article-embed\">\n<p> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">DeFi hacks are turning high yields into a hidden liquidity tax<\/h3>\n<\/p>\n<p> <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\"> <i class=\"fa-light fa-arrow-up-right\"\/> <\/span> <\/div>\n<h2>Governance now carries the recovery of the Bitcoin balance<\/h2>\n<p>The frozen BTC has not been seized or returned to the basket. Osmosis said it plans to ask governance to confiscate the 22.65 BTC and use Bitcoin accumulated in the community pool to cover the remainder.<\/p>\n<p>If governance recovers the full frozen amount, it would still need about 17.19 BTC to replace the 39.84 BTC impairment. No matching seizure or recapitalization measure appeared among the latest 20 on-chain proposals as of Sept. 9.<\/p>\n<p>Osmosis governance administers the allBTC contract, while a 3-of-6 moderator subDAO can pause the pool or mark a constituent asset as corrupted. Nomic\u2019s Bitcoin custody documentation separately says reserve disbursals require signatures representing more than 90% of its signatory set\u2019s voting power.<\/p>\n<p>Until enough valid backing is restored, allBTC holders remain collectively exposed because claims on the basket exceed its valid BTC-equivalent assets.<\/p>\n<p>That does not establish a realized haircut for any holder, but redemption at full parity now depends on the governance decision and the size of any community-pool contribution.<\/p>\n<\/div>\n<p>Featured,Hacks,Technology,Tokenization,Bitcoin,BTC,nBTC,OsmosisBitcoin,BTC,nBTC,Osmosis#Osmosis #freezes #BTC #Nomic #forwarding #bug #compromises #Bitcoin #reserves1789032865<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Osmosis has frozen 22.65 BTC after a flaw in Nomic\u2019s custom forwarding system allowed a double-spend that left the allBTC asset partly unbacked by Bitcoin. allBTC is issued against a basket of Bitcoin variants held on Osmosis, including nBTC from the Nomic bridge. The official allBTC dashboard showed 110.57 allBTC in circulation and 39.84 nBTC<\/p>\n","protected":false},"author":1,"featured_media":13046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[91,285,4425,6838,6837,1829,6835,6836,6088,1647],"class_list":["post-13045","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ethereum","tag-bitcoin","tag-btc","tag-bug","tag-compromises","tag-forwarding","tag-freezes","tag-nbtc","tag-nomic","tag-osmosis","tag-reserves"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Osmosis freezes 22.65 BTC after Nomic forwarding bug compromises Bitcoin reserves - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"description\" content=\"Even full recovery of the frozen Bitcoin balance would leave roughly 17.19 BTC for the community pool to replace.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=13045\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Osmosis freezes 22.65 BTC after Nomic forwarding bug compromises Bitcoin reserves\" \/>\n<meta property=\"og:description\" content=\"Even full recovery of the frozen Bitcoin balance would leave roughly 17.19 BTC for the community pool to replace.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptonews.uk.com\/?p=13045\" \/>\n<meta property=\"og:site_name\" content=\"Crypto News: Latest Cryptocurrency News and Analysis\" \/>\n<meta property=\"article:published_time\" content=\"2026-09-10T09:34:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/09\/allbtc-nomic-double-spend-governance-collage.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"\u884c\u653f\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\u884c\u653f\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13045\",\"url\":\"https:\/\/cryptonews.uk.com\/?p=13045\",\"name\":\"Osmosis freezes 22.65 BTC after Nomic forwarding bug compromises Bitcoin reserves - Crypto News: Latest Cryptocurrency News and Analysis\",\"isPartOf\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13045#primaryimage\"},\"image\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13045#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/09\/allbtc-nomic-double-spend-governance-collage.jpg\",\"datePublished\":\"2026-09-10T09:34:25+00:00\",\"author\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#\/schema\/person\/822778c5844e0d16d43dce6630f4f1bf\"},\"description\":\"Even full recovery of the frozen Bitcoin balance would leave roughly 17.19 BTC for the community pool to replace.\",\"breadcrumb\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13045#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cryptonews.uk.com\/?p=13045\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13045#primaryimage\",\"url\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/09\/allbtc-nomic-double-spend-governance-collage.jpg\",\"contentUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/09\/allbtc-nomic-double-spend-governance-collage.jpg\",\"width\":1280,\"height\":720},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13045#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/cryptonews.uk.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Osmosis freezes 22.65 BTC after Nomic forwarding bug compromises Bitcoin reserves\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/cryptonews.uk.com\/#website\",\"url\":\"https:\/\/cryptonews.uk.com\/\",\"name\":\"Crypto News: Latest Cryptocurrency News and Analysis\",\"description\":\"Latest Crypto &amp; 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