Ostium Releases Update on Incident: Price Data Compromised, Traders’ Collateral and Positions Unaffected

Ostium has released an update on its security incident. Its liquidity provider fund pool was attacked on July 15, resulting in a loss of 23,752,746 USDC. Preliminary investigations show that the attacker breached the off-chain infrastructure supplying price data to the protocol, submitted falsified illegal price reports, and extracted artificially generated profits from the fund pool by rapidly opening and closing multiple large positions. Ostium stated that trader collateral is stored in an isolated smart contract and was not affected by the incident, with all trading positions remaining open. The team suspended trading and froze all trading contracts within 60 minutes of the first attack transaction. Currently, Ostium is collaborating with Mandiant, zeroShadow, Collisionless, SEAL 911, and law enforcement agencies, and coordinating with exchanges, bridge contracts, and stablecoin issuers to advance the investigation. The engineering team is focused on fixing and strengthening relevant infrastructure to support the safe resumption of trading. Ostium said it will provide at least 24 hours’ advance notice before unfreezing trading contracts. After trading resumes, existing positions will be marked at the price when they reopen, unaffected by price fluctuations during the suspension period. Supporting affected liquidity providers and safely resuming trading remain the top priorities.