What happened
Layer 1 blockchain project TAC has confirmed that a hacker exploited a vulnerability in the precompile layer of the Cosmos EVM module, stealing roughly $7.5 million from an account. The attacker also moved approximately 2.986 billion TAC tokens out of custody wallets, according to the project team. TAC stressed that no new tokens were created and that only TAC tokens were affected, with other assets remaining safe.
Why it matters for the market
In response, TAC suspended the network at block 24,671,475, freezing all transactions, deposits, and withdrawals. The team says it is working with exchanges to trace the stolen funds. The incident echoes an earlier attack on MANTRA Chain, which was hit through the same Cosmos EVM module.
Separately, the same day brought another exploit: Term Labs protocol lost about $8.5 million. Earlier reports had already warned of a security event in the Cosmos EVM module, with officials recommending that affected blockchains pause operations.
What traders should watch
For markets, the immediate impact centers on TAC token liquidity and exchange trading. A halted network means users cannot move funds, which typically raises uncertainty and selling pressure once trading resumes. The broader Cosmos ecosystem may also see risk aversion, especially for chains relying on the EVM module, as traders weigh the possibility of similar exploits. Intraday speculative activity around TAC and related tokens could spike on volatility, though the freeze limits immediate flows and increases reliance on exchange venues for price discovery.
