{"id":13666,"date":"2026-09-24T12:10:56","date_gmt":"2026-09-24T12:10:56","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=13666"},"modified":"2026-09-24T12:10:56","modified_gmt":"2026-09-24T12:10:56","slug":"cosmos-restarted-to-seize-2-2-million-in-stolen-atom-but-169000-tokens-still-escaped","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=13666","title":{"rendered":"Cosmos restarted to seize $2.2 million in stolen ATOM, but 169,000 tokens still escaped"},"content":{"rendered":"<p><\/p>\n<div data-cs-editorial-figure-scope=\"\" data-cs-editorial-quote-scope=\"\" data-cs-image-viewer-scope=\"\" data-single-article-content=\"\">\n<p>Cosmos Hub restarted after a nearly day-long halt, moving 1.23 million ATOM linked to a governance exploit on Neutron.<\/p>\n<p>Validators resumed block production on Sept. 23 after stopping the network a day earlier, with the first block after the restart moving 1,227,121.37 ATOM, worth about $2.2 million, from an attacker-linked address.<\/p>\n<p>The intervention followed the movement of funds stolen from Neutron onto Cosmos Hub, extending the fallout from an attack that began on a separate blockchain in the Cosmos ecosystem. Cosmos Hub said its network was not exploited and that the halt was intended to secure assets bridged from Neutron before they could move further.<\/p>\n<p>Block production resumed at block 33,086,741, with the upgrade transferring the attacker-linked balance into a recovery address before ordinary activity continued. Cosmos Hub later said the secured assets had been placed in a community validator multisig while participants coordinated their return.<\/p>\n<p>Former Neutron contributor Spaydh said the attack began after an attacker accumulated enough NTRN voting power to pass an expedited governance proposal that reassigned administrative rights over 11 smart contracts.<\/p>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-565476\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-1a129c63-c489-4e4a-9058-836a415302ff.png\" alt=\"Flow diagram: Neutron governance exploit, affected ATOM bridged to Cosmos Hub, validator halt, and Sept. 23 restart; secured funds are in a community validator multisig.\" width=\"720\" height=\"900\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-1a129c63-c489-4e4a-9058-836a415302ff.png 1122w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-1a129c63-c489-4e4a-9058-836a415302ff-240x300.png 240w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-1a129c63-c489-4e4a-9058-836a415302ff-819x1024.png 819w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-1a129c63-c489-4e4a-9058-836a415302ff-768x960.png 768w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\"\/><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"lazyload aligncenter wp-image-565476\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-1a129c63-c489-4e4a-9058-836a415302ff.png\" alt=\"Flow diagram: Neutron governance exploit, affected ATOM bridged to Cosmos Hub, validator halt, and Sept. 23 restart; secured funds are in a community validator multisig.\" width=\"720\" height=\"900\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-1a129c63-c489-4e4a-9058-836a415302ff.png 1122w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-1a129c63-c489-4e4a-9058-836a415302ff-240x300.png 240w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-1a129c63-c489-4e4a-9058-836a415302ff-819x1024.png 819w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/exec-1a129c63-c489-4e4a-9058-836a415302ff-768x960.png 768w\" data-sizes=\"(max-width: 720px) 100vw, 720px\"\/><\/p>\n<p>The affected contracts included infrastructure used by Astroport, Drop, and other protocols and were subsequently migrated to malicious code that allowed assets to be withdrawn.<\/p>\n<p>Spaydh estimated the initial impact at roughly $4.4 million, comprising about $3 million in ATOM, $1.2 million in USDC, around $100,000 in DYDX and smaller amounts of wstETH and WETH. Notably, <em>CryptoSlate<\/em> previously reported that the losses amounted to roughly $9.3 million.<\/p>\n<p>Neutron\u2019s rate limits and subsequent halt prevented some of those assets from leaving the network. Spaydh said more than $1.6 million in USDC was protected, along with significant amounts of NTRN and ASTRO.<\/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 Catalyst\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 Catalyst <\/span><\/p>\n<h2 id=\"cs-inline-newsletter-1-title\" class=\"cs-inline-newsletter__title\">What\u2019s moving crypto. Why it matters.<\/h2>\n<p id=\"cs-inline-newsletter-1-copy\" class=\"cs-inline-newsletter__copy\">Get CryptoSlate\u2019s essential stories and what to watch next.<\/p>\n<p>  <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\" fill=\"currentColor\" viewbox=\"0 0 16 16\" aria-hidden=\"true\" focusable=\"false\"> <path d=\"M15 3.604H1v1.891h14v-1.89ZM1 7.208V16l7-3.926L15 16V7.208zM15 0H1v1.89h14z\"\/> <\/svg> <span>Published on Substack<\/span> <\/div>\n<div class=\"cs-inline-newsletter__form-shell\">\n<p id=\"cs-inline-newsletter-1-privacy\" class=\"cs-inline-newsletter__privacy\">Seven days a week. Unsubscribe anytime.<\/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<div class=\"cs-inline-newsletter__success\" role=\"status\" aria-live=\"polite\" aria-atomic=\"true\" tabindex=\"-1\"> <span class=\"cs-inline-newsletter__success-icon\" aria-hidden=\"true\"\/><\/p>\n<div>\n<h3 class=\"cs-inline-newsletter__success-title\">Check your inbox.<\/h3>\n<p class=\"cs-inline-newsletter__success-copy\">Your signup request was sent. If confirmation is required, follow the email from Substack.<\/p>\n<p class=\"cs-inline-newsletter__success-hint\">Look in spam or promotions if you don\u2019t see it.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/aside>\n<p>Roughly 70% of the stolen ATOM remained on Cosmos Hub when validators stopped block production, leaving about $2.15 million of ATOM within reach of the recovery operation.<\/p>\n<h2>Cosmos recovery leaves one gap as Neutron prepares restart<\/h2>\n<p>The first-block sweep secured most of the stranded ATOM, but a later refund from THORChain reached the attacker after the recovery transaction had already executed.<\/p>\n<p>Crypto analyst Rarma said 168,990.9 ATOM arrived at the attacker-linked address seven blocks after the restart.<\/p>\n<p>The tokens remained there for almost six hours before being transferred to Osmosis and sold in batches for about 266,841 USDC, with much of the proceeds subsequently converted into Ethereum.<\/p>\n<p>The THORChain refund arrived after the sweep, leaving the newly returned ATOM outside the recovery transaction.<\/p>\n<p>Rarma said an earlier attempt to transfer 500,000 ATOM was also included in a block and paid a fee before failing because the wallet lacked sufficient funds. He said the transaction showed the attacker-linked address could still submit an IBC transfer after the restart.<\/p>\n<p>Cosmos Hub has not publicly explained why the later transfer proceeded or whether additional restrictions were intended for funds reaching the address after the initial sweep.<\/p>\n<p>The bulk of the recovered ATOM remains under community control. Cosmos Hub said the funds captured during the restart came from the Neutron attack and are being held in a validator multisig while Hub validators, Neutron participants and affected protocols coordinate their return.<\/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\">Stopping a blockchain doesn&#8217;t always recover stolen funds \u2013 What actually happened when 3 networks pulled the plug<\/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<p>Meanwhile, attention is now shifting back to Neutron.<\/p>\n<p>Spaydh said contributors have prepared a new binary that would restore affected contracts to their previous code and administrators, tighten governance controls, and move remaining attacker-controlled assets into a validator multisig.<\/p>\n<p>The asset-return process is still being finalized, with recovered funds expected to be sent back to their original contracts and users after Neutron resumes block production.<\/p>\n<p>Spaydh said Neutron was targeting a restart within roughly 24 hours and expected asset returns to begin afterward. The project also plans to publish a full post-mortem once the chain is back online.<\/p>\n<p>Cosmos Hub said a separate forum update will follow with further details on the secured ATOM, leaving validators and affected protocols to reconcile the recovered balance against the portion that escaped after the restart.<\/p>\n<\/div>\n<p>Featured,Hacks,ATOM,cosmos,NeutronATOM,cosmos,Neutron#Cosmos #restarted #seize #million #stolen #ATOM #tokens #escaped1790251856<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cosmos Hub restarted after a nearly day-long halt, moving 1.23 million ATOM linked to a governance exploit on Neutron. Validators resumed block production on Sept. 23 after stopping the network a day earlier, with the first block after the restart moving 1,227,121.37 ATOM, worth about $2.2 million, from an attacker-linked address. The intervention followed the<\/p>\n","protected":false},"author":1,"featured_media":13667,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[6896,6299,7103,406,7098,7102,4370,2671,234],"class_list":["post-13666","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ethereum","tag-atom","tag-cosmos","tag-escaped","tag-million","tag-neutron","tag-restarted","tag-seize","tag-stolen","tag-tokens"],"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>Cosmos restarted to seize $2.2 million in stolen ATOM, but 169,000 tokens still escaped - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"description\" content=\"Cosmos\u00a0restart secured 1.23 million ATOM linked to the Neutron exploit, while 168,990 ATOM arriving afterward escaped the sweep.\" \/>\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=13666\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cosmos restarted to seize $2.2 million in stolen ATOM, but 169,000 tokens still escaped\" \/>\n<meta property=\"og:description\" content=\"Cosmos\u00a0restart secured 1.23 million ATOM linked to the Neutron exploit, while 168,990 ATOM arriving afterward escaped the sweep.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptonews.uk.com\/?p=13666\" \/>\n<meta property=\"og:site_name\" content=\"Crypto News: Latest Cryptocurrency News and Analysis\" \/>\n<meta property=\"article:published_time\" content=\"2026-09-24T12:10:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/09\/cosmos-hub-neutron-halt.webp\" \/>\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\/webp\" \/>\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=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13666\",\"url\":\"https:\/\/cryptonews.uk.com\/?p=13666\",\"name\":\"Cosmos restarted to seize $2.2 million in stolen ATOM, but 169,000 tokens still escaped - Crypto News: Latest Cryptocurrency News and Analysis\",\"isPartOf\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13666#primaryimage\"},\"image\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13666#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/09\/cosmos-hub-neutron-halt.webp\",\"datePublished\":\"2026-09-24T12:10:56+00:00\",\"author\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#\/schema\/person\/822778c5844e0d16d43dce6630f4f1bf\"},\"description\":\"Cosmos\u00a0restart secured 1.23 million ATOM linked to the Neutron exploit, while 168,990 ATOM arriving afterward escaped the sweep.\",\"breadcrumb\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13666#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cryptonews.uk.com\/?p=13666\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13666#primaryimage\",\"url\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/09\/cosmos-hub-neutron-halt.webp\",\"contentUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/09\/cosmos-hub-neutron-halt.webp\",\"width\":1280,\"height\":720},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=13666#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/cryptonews.uk.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Cosmos restarted to seize $2.2 million in stolen ATOM, but 169,000 tokens still escaped\"}]},{\"@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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