TAC network remains halted following major staking pool exploit

The TAC network has remained halted at block 24,671,475 for over 10 days following a major exploit that emptied its bonded staking pool on August 22. The attack resulted in the drain of approximately 2.98 billion TAC, representing 28.6% of the total supply. To address the shortfall, the TAC Foundation has pledged to replace 1.26 billion tokens from its treasury reserves.

The vulnerability was traced to a mismatch between balance records in the Cosmos EVM and the Cosmos SDK ledger. An unchecked subtraction during delegation caused a wrap-around error, allowing an attacker to zero out the protocol-controlled staking pool account while retaining legitimate tokens. While Cosmos Labs patched the critical flaw in May, the vulnerability remained present in certain versions until August 19.

Currently, the status of 1.66 billion attacker-held TAC on the BNB Chain remains unresolved, and normal block production on the TAC network has not yet resumed.