Ostium Attributes $24M Exploit to Off-Chain Breach, Smart Contracts Unaffected
The decentralized trading protocol says trader collateral remains safe and will reveal a recovery plan for LPs.
Decentralized trading protocol Ostium has attributed a $24 million exploit to an off-chain infrastructure breach, confirming that its smart contracts were not compromised. The team stated that trader collateral was unaffected by the attack.
Recovery Plan for Liquidity Providers
Ostium announced that it will release a recovery plan specifically for liquidity providers (LPs) who suffered losses. The protocol is investigating the breach and has taken steps to secure its off-chain systems.
- The exploit targeted off-chain components, not on-chain smart contracts.
- Trader funds remain secure, according to the team.
- A detailed recovery plan for LPs is expected soon.
The incident highlights ongoing security challenges in decentralized finance, particularly at the off-chain level. Ostium has not yet specified the exact nature of the breach or whether law enforcement has been contacted.