Advisories for Golang/Github.com/Babylonlabs-Io/Babylon/V2 package

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 This creates a “phantom stake”: the delegator’s BTC capital is withdrawn, the FP is inactive, but costaking continues to treat the delegation as active BTC stake allowing …

A vulnerability exists in Babylon’s BLS vote extension processing where a malicious active validator can submit a VoteExtension with the block_hash field omitted from the protobuf serialization. Because protobuf fields are optional, unmarshalling succeeds but leaves BlockHash as nil. Babylon then dereferences this nil pointer in consensus-critical code paths (notably VerifyVoteExtension, and also proposal-time vote verification), causing a runtime panic.

Sending a message that modifies the validator set at the epoch boundary halts the chain.

Sending transactions with fees different than native Babylon genesis denom (ubbn) leads to chain halt.