Security

Raincards infrastructure is suspected of being involved in an attack that drained funds from multiple neobanks and their users. The exploiter bridged $1M USDC from Solana to Ethereum via deBridge and laundered the funds using TornadoCash. Affected services include etherfi Cash, Avalanche Card and Solayer Pay, with users also reporting drained balances. The post said Circle had more than two hours to freeze the funds but did not act, and urged users to withdraw funds from impacted neobanks as soon as possible.

Avici confirmed it was hit by an authorization-bypass exploit, with the attacker stealing about $670K. On-chain data show the attacker created a wallet at 13:40 UTC and bridged in $190 of USDC from Ethereum to cover gas. Draining began at 16:49 UTC and has continued, with 8,857 transactions executed by submitting a signature bundle, calling AddCollateralAdmin to gain admin privileges, and then withdrawing. The data indicate a verification flaw in which the second signature check pointed back to instruction 0, and the protocol’s upgrade key has not been used since March 2025.

Cosmos Labs has publicly disclosed an ongoing security vulnerability in its shared EVM module and formally advised related networks to pause operations to prevent potential risks from escalating. The flaw could affect EVM-compatibility components across the Cosmos ecosystem, with potential knock-on effects for associated assets including ATOM and VIRTUAL. Cosmos Labs has not yet detailed the scope of impact or provided a remediation timeline.

Inflows into Bitcoin and Ether exchange-traded funds have climbed to their highest level of 2026. The figures suggest a marked increase in institutional or retail capital entering the crypto market through ETFs. The record pace of inflows indicates stronger investor willingness to allocate to major digital assets. The trend is being watched as a gauge of demand for mainstream crypto assets.

Decentralized lending protocol Moonwell on Base has been hit by an exploit, with about $9MILLION stolen. The attacker manipulated MAMO tokens as collateral to borrow unbacked cbBTC, USDC, wstETH and ETH. Despite the incident, Moonwell’s native token WELL rose 25% over the past hour.

A critical vulnerability has been found in the Ethereum app on Ledger hardware wallets that could let a malicious application change ETH transaction details during signing without the altered information appearing on the device screen. The issue affects users managing ETH and Ethereum-related assets on Ledger and could result in transfers being approved without their knowledge. Ledger said the flaw is fixed in Ethereum app v1.22.2 and urged users to update the app, Ledger Live and device firmware, and to avoid signing transactions until all updates are completed.

BNB Chain has completed the Pasteur hard fork, closing critical validator exploit vectors and boosting testnet throughput 88% to 2,324 TPS. The upgrade shifts block execution off the validator’s critical path. This optimizes block capacity without sacrificing 450ms block times.

The Sandbox has released findings on a recent SAND bridge security incident. It said an attacker exploited a configuration function in the SAND token contract on Base and BNB Chain, where the contract also served as the LayerZero bridge integration, and set themselves as the sole verifier for incoming bridge messages. The attacker then stole about 14.74 million SAND from the Ethereum vault backing the bridge, roughly 0.5% of the fixed 3 billion maximum supply, while the team said it quickly contained the exploit and completed on-chain forensics.

Metaverse project The Sandbox said its cross-chain bridge infrastructure was hit by a security incident. The issue could affect the transfer of assets between different blockchain networks, though the scope of any impact and potential losses have not been disclosed. The incident has raised concerns about the platform’s infrastructure security and could weigh on SAND and other ecosystem assets in the near term.

On Aug. 22, Kiichain was exploited through vulnerabilities in the Cosmos EVM module, with losses of about 148 million KII. The team halted the chain after detecting the attack to prevent further losses, and about 80.70 million KII remains frozen in the attacker’s on-chain address and is recoverable after a restart. Most of the remaining funds were bridged to BNB Chain and sold, while another 3 million KII was sent to KuCoin and a freeze request has been filed. The issue stems from three flaws in a shared Cosmos EVM module that also affected Mantra and TAC the same week, and Kiichain is preparing fixes, an upgrade and restart, plus asset migration and bridge limits.