The Cosmos Hub community rejected Proposal #1056, which aimed to return 1.2 million ATOM to the wallet of an attacker who exploited the Neutron protocol. The proposal received a 94.64% NoWithVeto vote, the strongest rejection mechanism in the ecosystem.
The attack occurred on September 22, 2026, when an individual spent approximately $20,199 to acquire 31.6 million NTRN tokens, gaining control over 10 to 11 contracts. The total impact of the exploit is estimated at $9.4 million, with $5 million remaining on the Neutron protocol.
Following the attack, validators halted the Cosmos Hub at block height 33,086,740 for 25 hours. Upon resuming operations on September 23, they transferred 1,227,121 ATOM from the attacker's reach to a multisig address for safekeeping.
Proposal #1056 also suggested a 500,000 ATOM bounty for supporters. However, the voting turnout was only 19.94%, failing to meet the 40% quorum required for passage. The deposit for the proposal will be burned due to the high volume of veto votes.
