Osmosis freezes 22.65 BTC after Nomic forwarding bug compromises Bitcoin reserves

Osmosis has frozen 22.65 BTC after a flaw in Nomic’s custom forwarding system allowed a double-spend that left the allBTC asset partly unbacked by Bitcoin.allBTC is issued against a basket of Bitcoin variants held on Osmosis, including nBTC from the Nomic bridge. The official allBTC dashboard showed 110.57 allBTC in circulation and 39.84 nBTC in the basket at the reporting cutoff.Infographic traces allBTC’s recovery path from Nomic forwarding failures through paused activity and governance decisions over frozen Bitcoin and reserve backing.Osmosis said the nBTC was created from false vouchers, putting 36.03% of allBTC’s backing in question and leaving about 70.73 BTC-equivalent of other backing.The statement also noted that neither its chain nor the Inter-Blockchain Communication protocol was compromised, and the bug was in Nomic’s forwarding logic.SlowMist’s incident database also described the event as a Nomic bridge double-spend.The public disclosure came more than two months after the apparent exploit activity. On-chain researcher Rarma traced the principal minting to June 25 and said 22.65060846 allBTC created during July 17 activity remained unmoved when the trace was publishe...