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Ostium to reopen Arbitrum perpetual trading July 23 after $23.8M exploit
Trading will resume with positions marked to the live price at reopen, while liquidity provider deposits remain paused and only orders triggered at 10:00 a.m. ET July 23 will execute.
Ostium, an Arbitrum perpetuals trading protocol, said it will reopen trading on Thursday, one week after an exploit drained its liquidity provider vault. The attack, dated July 15, took almost 23.8 million USDC from Ostium's liquidity provider vault, according to the protocol.
Ostium said the attacker compromised off-chain infrastructure used to feed prices into the system, then submitted manipulated price reports to open and instantly close large positions to extract an artificial profit. The company added that trader collateral is held in a separate, isolated contract and was not affected, with positions remaining open.
The protocol paused trading and froze all trading contracts within 60 minutes of the first exploit transaction, and it said it is coordinating recovery with firms including Mandiant, zeroShadow, Collisionless, and SEAL 911, alongside law enforcement. Ostium also said it is working with exchanges, bridges, and stablecoin issuers.
At reopening, open positions and pending orders will carry over, but positions will be marked to the live market price at that moment instead of price movements during the pause. Take-profit, stop-loss, or limit orders whose levels were reached at live prices at 10:00 a.m. ET on July 23 will execute then, and a position will be liquidated only if it is below its liquidation level at the reopening price. Ostium warned that illegitimate accounts are attempting to impersonate its team and said it will not ask users for private keys, seed phrases, or funds.