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Babylon Incorrect FP inactive accounting in costaking creates “phantom stake” that earns rewards after BTC unbondGHSA-4rmq-mc2c-r495

Fix: babylonlabs-io/babylon@e65c3a5

GHSA-4rmq-mc2c-r495 is a security vulnerability in github.com/babylonlabs-io/babylon/v4. A fix is available for github.com/babylonlabs-io/babylon/v4 — see the affected versions and patch details below.

Also known asGO-2025-4214
Published
Updated
Affected
4 pkgs
Patched
1 / 4
Exploits
None indexed
Exploitation data as of Dec 15, 2025 · OSV.dev, FIRST.org (EPSS)

Real-World Exposure

4 pkgs affected
🐹github.com/babylonlabs-io/babylon/v4🐹github.com/babylonlabs-io/babylon/v3🐹github.com/babylonlabs-io/babylon/v2🐹github.com/babylonlabs-io/babylon

Real-time download stats are indexed for npm and PyPI packages. This vulnerability affects Go packages — download data is not available via public APIs for these ecosystems.

Description

Summary

A state consistency bug in x/costaking can leave a BTC delegator with non-zero ActiveSatoshis (Phatom Stake) even after they have fully unbonded their BTC delegation, if their Finality Provider (FP) drops out of the active set in the exact same babylon block height. This creates a “phantom stake”: the delegator’s BTC capital is withdrawn, the FP is inactive, but costaking continues to treat the delegation as active BTC stake allowing ongoing rewards accrual without backing BTC.

Impact

An address can keep earning costaking rewards with zero BTC staked.

Reported by @BottyBott.

Affected Packages

4 total 1 fixed
EcosystemPackageVulnerable rangeFix
🐹Gogithub.com/babylonlabs-io/babylon/v4all versions4.2.0go get github.com/babylonlabs-io/babylon/v4@v4.2.0
🐹Gogithub.com/babylonlabs-io/babylon/v3all versionsNo fix
🐹Gogithub.com/babylonlabs-io/babylon/v2all versionsNo fix
🐹Gogithub.com/babylonlabs-io/babylonall versionsNo fix

Detection & mitigation playbook

Open-source dependency
  1. Detect

    Scan your dependency tree (package-lock.json, pnpm-lock.yaml, requirements.txt, go.sum, etc.) for github.com/babylonlabs-io/babylon/v4, including transitive dependencies — a direct dependency you never call can still pull in a vulnerable version.

  2. Fix

    Update github.com/babylonlabs-io/babylon/v4 to 4.2.0 or later, then make sure no transitive (indirect) dependency still pins the vulnerable range — O3 confirms GHSA-4rmq-mc2c-r495 is resolved across your whole dependency graph.

  3. Workarounds

    If you can't upgrade right away: gate or disable the affected feature, validate untrusted input at the boundary, and avoid passing attacker-controlled data into the vulnerable path. O3's runtime protection blocks exploitation in production as an interim safeguard until the upgrade lands.

Frequently Asked Questions

### Summary A state consistency bug in `x/costaking` can leave a BTC delegator with non-zero `ActiveSatoshis` (Phatom Stake) even after they have fully unbonded their BTC delegation, if their Finality Provider (FP) drops out of the active set in the exact same babylon block height. This creates a “phantom stake”: the delegator’s BTC capital is withdrawn, the FP is inactive, but costaking continues to treat the delegation as active BTC stake allowing ongoing rewards accrual without backing BTC. ### Impact An address can keep earning costaking rewards with zero BTC staked. Reported by @Botty
O3 Security · Impact-Aware SCA

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Babylon Incorrect FP inactive accounting in costaking…