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TI-2025-43847 Aliases GHSA-4rmq-mc2c-r495

Babylon Incorrect FP inactive accounting in costaking creates “phantom stake” that earns rewards after BTC unbond

Priority LOW 38CWE-459Published · Updated

Key facts

Attack vector
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Privileges required
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User interaction
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Attack complexity
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Impact type
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Confidentiality · integrity · availability
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Fix status
Fixed

No CVSS vector from any source. Fix status from GitHub.

Summary

### 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 This creates a “phantom stake”: the delegator’s BTC capital is withdrawn, the FP is inactive, but costaking continues to treat the delegation as active BTC stake allowing ongoing rewards accrual without backing BTC.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.

Why it matters now

Fix Fixed github.com/babylonlabs-io/babylon/v4 (Go): 4.2.0

SSVC decision points

Not available: CISA has not published SSVC decision points for this record.

Affected products

VendorProductAffected versionsFixed inStatusSource
—github.com/babylonlabs-io/babylon/v4 (Go)before 4.2.04.2.0Patch availableGHSA-4rmq-mc2c-r495
—github.com/babylonlabs-io/babylon/v3 (Go)up to 3.0.0-snapshot.250805a—No fix listedGHSA-4rmq-mc2c-r495
—github.com/babylonlabs-io/babylon/v2 (Go)up to 2.3.2—No fix listedGHSA-4rmq-mc2c-r495
—github.com/babylonlabs-io/babylon (Go)up to 1.1.0—No fix listedGHSA-4rmq-mc2c-r495
  • github.com/babylonlabs-io/babylon/v4 (Go) Vendor— Affected before 4.2.0 Fixed in 4.2.0 Patch available GHSA-4rmq-mc2c-r495
  • github.com/babylonlabs-io/babylon/v3 (Go) Vendor— Affected up to 3.0.0-snapshot.250805a Fixed in — No fix listed GHSA-4rmq-mc2c-r495
  • github.com/babylonlabs-io/babylon/v2 (Go) Vendor— Affected up to 2.3.2 Fixed in — No fix listed GHSA-4rmq-mc2c-r495
  • github.com/babylonlabs-io/babylon (Go) Vendor— Affected up to 1.1.0 Fixed in — No fix listed GHSA-4rmq-mc2c-r495

Remediation

  • Fix · GHSA-4rmq-mc2c-r495 github.com/babylonlabs-io/babylon/v4 (Go) Fixed in 4.2.0 Advisory →

Timeline

  1. 2026-10-03 Threatist record created from GHSA-4rmq-mc2c-r495

References

Sources

This product uses the NVD API but is not endorsed or certified by the NVD. Sources and licences