Blockaid uncovers $18M exploit that forces Ostium trading halt

Blockchain security firm Blockaid revealed that Ostium was targeted in an exploit that drained nearly $18 million USDC from its liquidity vault using a compromised oracle signer key. The attacker manipulated oracle reports to bypass verification processes and extract profits without genuine market risk. The incident has led to a temporary halt in trading while investigations are ongoing. Despite institutional backing and security audits, the attack highlights the vulnerability of infrastructure outside of audited smart contracts in the crypto space. The incident underscores the importance of securing oracle infrastructure as decentralized finance protocols rely on external data feeds for pricing.