Cosmos Labs Urges EVM Chains to Halt as KiiChain and TAC Attacks Raise Security Fears

Source: bitcoinethereumnews2026/08/26 05:04

Analysis

This incident marks a significant escalation in cross-chain security risk, as the vulnerability resides not in individual chain code but in the shared Cosmos EVM module, meaning any Cosmos-based EVM chain with vesting accounts enabled could be exposed. The attack on KiiChain drained over 148 million KII tokens through 18 repeated exploits before the network halted at block 9,355,723, and the same class of flaw has been linked to compromises at MANTRA and TAC during the same week. A critical detail is the disclosure timeline: a fix for one of three underlying defects was published on August 19 without advance notice to affected networks or clear critical-security labeling, raising questions about coordinated vulnerability handling across the ecosystem. Cosmos Labs has urged affected networks to halt operations but has not yet confirmed whether all incidents share a single root cause or specified which chains were instructed to suspend. Watch for the promised incident report from Cosmos Labs, whether additional Cosmos EVM chains disclose exposure, and how the ecosystem revises its coordinated disclosure and patching procedures in response.

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According to KiiChain, delayed warnings allowed exposure to continue as attackers drained funds before affected Cosmos EVM networks were halted. Cosmos Labs has urged affected networks in contact with its team to halt operations amid an ongoing security incident involving the EVM module. Statements issued by KiiChain, TAC, and MANTRA have all pointed to flaws within the Cosmos EVM infrastructure when describing the attacks they faced in recent days. Cosmos Labs, however, has yet to establish publicly whether the incidents stemmed from one common flaw or clarify which networks were specifically instructed to suspend operations. EVM Security Crisis Escalates Cosmos Labs said it will publish an incident report once the situation has been resolved. Meanwhile, KiiChain said an attacker drained 148,326,583.15 KII from wallets on August 22, repeating the same technique 18 times against different targets. The chain detected the activity internally and halted at block 9,355,723, thereby stopping further theft and freezing funds that remained on the network. According to KiiChain, the root cause had been identified, reproduced and fixed. It said that the vulnerability was in the shared Cosmos EVM module, rather than KiiChain-specific code. The chain said three upstream defects combined to enable the attack, including an underflow in the staking precompile when it writes a post-delegation balance back to the EVM, along with two other undisclosed bugs. KiiChain said the same class of vulnerability affected Cosmos EVM chains with vesting accounts enabled and linked the issue to the compromises of MANTRA and TAC during the same week. The handling of the vulnerability has also come under scrutiny. A security fix for one of the three flaws was made public on August 19, but KiiChain said affected networks were not given advance notice and the release was not clearly flagged as a critical security update. When…

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