Ostium Trading Platform Hit by $23.75 Million Exploit via Off-Chain Price Manipulation Ostium, a decentralized trading platform built on the Arbitrum blockchain, suffered a $23.75 million exploit last week after attackers compromised its off-chain infrastructure used for price feeds. The incident, disclosed on July 16, forced the platform to pause trading within 60 minutes of detecting the breach. The attacker manipulated price reports to open and close large positions artificially, siphoning funds from Ostium’s liquidity provider vault. While trader collateral held in a separate smart contract remained unaffected, existing positions were frozen as the platform halted operations. Ostium confirmed that no user funds were stolen, and authorities were notified. Blockchain security firm PeckShieldAlert traced the stolen USDC, revealing the attacker swapped it for 12,080 Ethereum (ETH) before depositing 10,540 ETH into TornadoCash, a cryptocurrency mixer, to obscure the funds’ origin. Ostium, which allows speculation on traditional and crypto assets using USDC for settlements, is now securing its infrastructure and assessing next steps for liquidity providers. Trading remains paused, with the platform promising at least 24 hours’ notice before resuming operations. A detailed post-mortem analysis is expected in the coming days.