Cosmos Hub governance participants overwhelmingly rejected Proposal #1056, which sought to return approximately 1.2 million ATOM recovered after the Neutron protocol attack and distribute a 500,000 ATOM bounty among supporting voters. NoWithVeto ballots represented 94.64% of participating voting power, while turnout reached 19.94%, below the 40% quorum required for passage. The vote followed a September 22, 2026 exploit in which an attacker spent roughly 20,199 USDC to acquire about 31.6 million NTRN and gain administrative control over 10 of 11 targeted Neutron contracts. The attack caused an estimated $9.4 million in losses. Cosmos Hub validators halted the Hub at block height 33,086,740 for roughly 25 hours and later moved 1,227,121 ATOM from the attacker's reach into a multisig recovery wallet. About $5 million remains on the halted Neutron protocol, while other assets moved across networks require separate recovery efforts.