Cosmos Labs has urged validators operating chains built with its Cosmos EVM module to suspend network operations after a new security incident raised concerns across the ecosystem. The warning came as several Cosmos-based networks faced disruptions and reported exploits linked to the shared software stack.
The incident follows a turbulent week for Cosmos EVM chains. MANTRA Chain halted its network after detecting suspicious activity and later said the incident was contained. The team reported that two wallet addresses were affected but said user funds were not exploited. It subsequently prepared a patched software release and coordinated with validators before resuming operations.
KiiChain and TAC also reported security incidents involving vulnerabilities in components connected to the Cosmos EVM environment. KiiChain said an attacker exploited a flaw that enabled unauthorized balance manipulation and drained about 148 million KII across multiple transactions before the chain was frozen.
Shared software raises ecosystem-wide risks
Cosmos EVM provides Ethereum Virtual Machine compatibility to Cosmos-based blockchains, allowing developers to deploy Ethereum-style smart contracts while using the Cosmos stack. However, a vulnerability in a shared component can potentially affect multiple independent networks.
The latest warning follows an earlier Cosmos EVM vulnerability disclosed this year. That flaw involved incorrect state handling during nested EVM execution and led to losses on Saga EVM. Cosmos Labs later released a permanent fix and coordinated upgrades with affected chains.
The current incident remains under investigation, and Cosmos Labs has said it will publish a detailed report after the situation is contained. Until then, validators face uncertainty over which networks remain exposed and whether additional chains could be affected.
The episode highlights the security challenge facing blockchain ecosystems that rely on common infrastructure. A single vulnerability can turn an isolated exploit into a broader industry incident, making rapid disclosure, coordinated upgrades and validator cooperation critical to limiting losses.
