Security failures and token sell-offs dominated today's crypto headlines, with an exploited Cosmos EVM bug draining millions across multiple chains, a layer-1 network freezing its mainnet after a token breach, and a branded SOL token collapsing after large-scale wallet sales.
Cosmos EVM bug exploited across six networks
Cosmos Labs conceded it misjudged the severity of a bug in the common Cosmos EVM software that was later used to steal roughly $5.7 million from six blockchain networks between August 20 and 25. A researcher had reported the flaw in April via a bug bounty program; testers determined it was not a threat to live networks and implemented a patch without issuing a public warning. MANTRA Chain reported the largest single loss, about $3.6 million, and said the patch was released roughly 20 hours before the attackers began their operations. According to the producer's notes, the attackers converted stolen tokens into roughly $2.87 million on decentralized exchanges and about $2.85 million on centralized exchanges, with accounts on the latter subsequently frozen.
Fogo mainnet suspended after foundation breach and token movement
Layer-1 blockchain Fogo suspended its mainnet on Saturday after the foundation announced that an attacker had obtained 400 million FOGO tokens, about $3 million at the time, in what appears to have been a breach of the foundation. Initially the foundation said there was “no impact to the blockchain, which continues to operate normally,” but it later froze the network to perform an upgrade and restrict addresses tied to the suspicious activity. The 400 million tokens represent 4% of Fogo’s initial 10 billion supply and account for more than 10% of the current circulating supply, prompting major exchanges Bitget and KuCoin to suspend FOGO deposits and withdrawals.
Trump-branded GOLD token collapses after large sales
Real Trump Coins, a brand publicly promoted by former President Trump in 2024, advertised a “Trump Digital GOLD” token on Solana before deleting related posts on X. Wallets associated with the group sold 224.5 million GOLD tokens as the market value collapsed by about 99 percent. Analytics firm Lookonchain reported that the group controls 82.45% of the total supply; 15 newly created wallets spent $18,657 to acquire the 224.5 million tokens and then sold them for 3,178 SOL, roughly $330,000. GOLD’s market capitalization fell from about $50 million to roughly $500,000, and observers have questioned the token’s legitimacy amid unconfirmed reports suggesting a possible connection to Iranian hackers.
Context on shared software and token risks
Common infrastructure and shared software components can create systemic risk when vulnerabilities are misclassified or not publicly disclosed. The Cosmos EVM instance at the center of this incident is used by multiple chains; a vulnerability in such shared layers can cascade across projects. Similarly, token controls and foundation custody practices can pose concentrated risks when large token allocations are held by few entities or when foundational keys are compromised.
Market and exchange responses
In both the Cosmos and Fogo incidents, exchanges and custodial platforms took action after suspicious activity: centralized exchange accounts tied to the Cosmos theft were frozen, and Bitget and KuCoin suspended FOGO deposits and withdrawals following the token movement and network freeze. These steps reflect standard industry responses intended to limit on-ramps for stolen assets and to protect users while incidents are investigated.
Takeaways from the day's events
Today's events illustrate persistent security challenges across blockchains and token projects: a patched but undisclosed bug was weaponised across multiple chains; a foundation-level breach prompted a mainnet suspension and exchange halts; and a high-profile branded token lost almost its entire market value after concentrated sales. Each story highlights different facets of operational, custodial and market risk in the crypto ecosystem.
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