# Cosmos Hub Neutron governance exploit

> Live situation record from CLSTR: https://clstr.news/situations/cosmos-hub-neutron-governance-exploit
> Updated: 2026-09-25T20:05:41.000Z. Sources: 7. Developments: 2.

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

Cosmos Hub officials clarified that the Hub itself was not vulnerable to the exploit, as the issue was limited to assets moved from Neutron. To secure the funds, validators transferred roughly 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.

Following the incident, a community proposal known as Proposal 1056, or ‘ATOM Refund & Justice Bounty,’ was introduced. This proposal sought to distribute 1.72 million ATOM from the community pool, consisting of the 1.22 million ATOM linked to the attack and a 500,000 ATOM ‘justice bounty’ for supporters. However, the proposal has faced overwhelming opposition. As of late September, approximately 95% of voters selected the ‘No with Veto’ option, and the proposal is expected to fail if the ‘No with Veto’ votes exceed 33.4% of the total, provided voter turnout meets the required threshold.

## Timeline

### 2026-09-25: Cosmos Hub voters move to veto 1.2 million ATOM refund proposal

Cosmos Hub voters are overwhelmingly rejecting a proposal to refund 1.2 million ATOM to an address linked to the Neutron governance attack, with 95% of votes currently favoring a veto.

4 sources. https://clstr.news/cluster/cosmos-hub-voters-move-to-veto-12-million-atom-refund-proposal

### 2026-09-23: Cosmos Hub resumes operations after Neutron governance exploit

Cosmos Hub has resumed operations after a network halt triggered by a governance exploit on Neutron. Voters have overwhelmingly rejected a proposal to refund 1.22 million stolen ATOM to the attacker.

4 sources. https://clstr.news/cluster/cosmos-hub-halts-network-after-95m-governance-attack-on-neutron

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Cite as: Cosmos Hub Neutron governance exploit. CLSTR, https://clstr.news/situations/cosmos-hub-neutron-governance-exploit
