Cosmos Hub resumes operations after Neutron governance exploit

The Cosmos Hub network has resumed normal operations and block production following a voluntary temporary halt. The suspension was implemented by validators to respond to a governance exploit on the Neutron network, which allowed an attacker to gain administrative control over certain contracts and move assets, including approximately 1.22 million ATOM.

Cosmos Hub officials clarified that the Hub itself was not vulnerable to the exploit; the issue was limited to assets moved from Neutron. To secure the funds, validators moved approximately 1.22 million ATOM from the attacker's wallet to a new address protected by a 4-of-6 multi-signature structure involving six validators.

A community proposal (Proposal 1056) to refund the 1.22 million ATOM to the attacker and provide a bounty to supporters has faced overwhelming opposition. As of September 26, approximately 95% of voters selected ‘No with Veto’. The voting process is expected to conclude on September 30.