allBTC on Osmosis loses 36% of collateral following Nomic exploit

Approximately 36% of the collateral for Alloyed BTC (allBTC) on the Osmosis decentralized exchange has become unbacked due to an exploit on the Nomic chain. The vulnerability, located in a custom transaction forwarding mechanism on Nomic, allowed an attacker to double-spend nBTC and issue fraudulent vouchers to Osmosis. While Osmosis and the IBC protocol remain secure, the attacker successfully swapped the illicit nBTC for other assets, including WBTC and USDC, eventually moving funds to Ethereum as ETH.