It will take “at least two days” for the Osmosis blockchain platform, which has been down for a day due to a security vulnerability, to get it working again. The project team said users will be reimbursed for lost funds.

Thank you for being patient as the core teams deal with the situation.

Below is the latest information on the error and subsequent chain stoppage.

— Osmoz 🧪 ​​(@osmozzon) 8 June 2022

On June 8, the blockchain suspended block production due to a vulnerability that could drain Osmosis DEX liquidity pools. The project team estimated damage at approximately $5 million.

The developers have confirmed that it is possible to exploit this vulnerability due to a bug found in the Osmosis v9 update that was activated on May 7.

The error was due to the miscalculation of the shares of liquidity providers when depositing and withdrawing assets from the pools. Skipped during internal testing of the update.

“The core Osmosis development team takes full responsibility for this oversight. This means that the strategic reserve, not the community pool, takes responsibility for lost funds.

The developers plan to partially cover the losses by returning the funds withdrawn due to the vulnerability. The team identified 4 addresses that accounted for more than 95% of the exploit’s implementation.

The owners of two are ready to return the funds in full, the rest interacted with centralized exchanges. The developers passed “relevant information” to the end.

— The remaining 2 people have txs to/from CEXs

— Contacted exchanges with relevant information to identify abusers and potentially recover funds.

— Osmoz 🧪 ​​(@osmozzon) 8 June 2022

FireStake, a betting service for delegates of the Cosmos ecosystem, has announced that it is ready to return assets. Two of its users “turned $226,000 into $2 million” during the “exploit test”.

to return the funds as soon as possible. We’re also working with the Osmosis team to encourage anyone who takes advantage of this situation to come forward and get their money back.

You can come to us and we can help you act as a liaison officer. We need to fix this.

— FireStake | validator (@stake_fire) 8 June 2022

“We are currently working with the Osmosis team to get the funds back as soon as possible. “We urge all beneficiaries to contact and return the assets,” FireStake said in a statement.

According to the developers, they are testing the Osmosis v10 update. It is assumed that the blockchain will continue to work after its release.

“This is expected to take at least two more days, although the estimated timeline varies,” they wrote.

Recall that in May 2022, the Wormhole project team paid $10 million to a white hat hacker who discovered a critical vulnerability in the cross-chain protocol.