Neutron DAO Passes Proposal 9 to Transfer Contracts After $9.3M Exploit

Key Facts

1The Neutron DAO community passed Proposal 9, which transferred control of 11 smart contracts to the attacker.

2Total incident estimates for Astroport and Drop protocols reached approximately $9.3 million.

Amid escalating security challenges in the decentralized finance sector, the Neutron DAO community has taken a significant step to address the fallout of a major exploit. According to reports, the community passed Proposal 9, which officially transfers control of 11 smart contracts to the attacker. These contracts are tied to the Astroport and Drop protocols, with total incident estimates reaching approximately $9.3 million. The move follows a security breach that exploited the administrative link between these applications and the network's governance system.

The estimated losses include $4.9 million from the Astroport exchange and $4.4 million from the Drop liquid-staking protocol. Per market data, the incident prompted a temporary halt of the Cosmos Hub network to restrict the movement of affected assets. While the governance proposal has been finalized, the definitive balance of recovered versus permanently lost funds remains unconfirmed, as authorities and developers continue to assess the final impact on the ecosystem's liquidity.

Traders should monitor the stability of DeFi protocols within the Neutron ecosystem as the situation evolves. As of the close on September 24, 2026, specific price data for the related instruments is unavailable, but the sentiment remains bearish due to the loss of contract control. With no major crypto-specific catalysts in the immediate upcoming calendar, the focus remains on internal governance updates and potential recovery efforts for the affected protocols.