Ostium Exploit Traced to Fraudulent Bitcoin Price Reports

TLDR

• Ostium blamed an off-chain infrastructure breach for the July 15 exploit.
• The attacker drained 23.75 million USDC from the protocol’s OLP vault.
• Fraudulent BTC-USD price reports created artificial trading profits.
• Ostium found no flaw in its smart contracts or protocol multisigs.
• Trader collateral and user margin remained secure in trading contracts.

Ostium said an off-chain security breach caused the July 15 exploit that drained 23.75 million USDC from its OLP vault. The perpetuals exchange ruled out a flaw in its smart contracts or a compromise of its protocol multisigs.

The company published its findings in a post-mortem on Wednesday. It said the attacker gained unauthorized access to off-chain systems and submitted false BTC-USD price reports to the protocol.

Ostium Traces Attack to Off-Chain Systems

According to Ostium, the fake price reports allowed the attacker to record artificial trading profits. The funds came from the public OLP vault, which provides liquidity for trading activity on the platform.

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