The Ostium trading platform announced that an attacker stole $23.75 million from its liquidity provider vault last week, after compromising off-chain infrastructure used to feed prices into the protocol.

According to an update from the platform yesterday, the attacker submitted illegitimate price reports disguised as valid ones, then rapidly opened and closed large positions to generate artificial profits.

Trader collateral was held in a separate contract and was not affected, while existing positions remain open, the company clarified.

Ostium is a decentralized trading platform built on the Arbitrum finance-native blockchain scaling solution, allowing users to speculate on the prices of traditional and crypto…