Osmosis freezes 22.65 BTC after Nomic forwarding bug compromises Bitcoin reserves

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Osmosis froze 22.65 BTC after a bug in Nomic’s Bitcoin forwarding mechanism compromised reserves associated with the IBC-connected bridge. The incident appears to stem from a technical flaw rather than a Bitcoin network failure, with the freeze intended to prevent further movement of affected funds. The key implication is heightened counterparty and bridge risk for users holding Bitcoin in cross-chain ecosystems, underscoring the need for stronger safeguards and audits.

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