Cosmos Hub proposal for ATOM refund faces 95% veto vote

The Cosmos Hub community just delivered one of the most decisive governance rejections in recent memory. Proposal #1056, which sought to refund approximately 1.2 million ATOM to the wallet of a Neutron protocol attacker, drew a staggering 94.64% “NoWithVeto” vote, the harshest possible rejection mechanism in Cosmos governance. The attack that started it all On September 22, 2026, an attacker exploited governance vulnerabilities within the Neutron protocol. By spending roughly 20,199 USDC to purchase approximately 31.6 million NTRN tokens, the attacker gained controlling rights over 10 to 11 protocol contracts. The total estimated impact of the attack reached approximately $9.4 million. Around $5 million remained trapped on the halted Neutron protocol, while about $2.1 million worth of ATOM had already been bridged over to the Cosmos Hub through an interchain exploit. Validators responded by halting the Cosmos Hub at block height 33,086,740, a drastic measure that kept the network offline for roughly 25 hours. When operations resumed on September 23, validators executed a one-time state-level change, transferring 1,227,121 ATOM from the attacker’s reach into a multisig address for s...