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Test your applicationsUpgrade github.com/cosmos/evm/precompiles/ics20 to version 0.6.0 or higher.
Affected versions of this package are vulnerable to Always-Incorrect Control Flow Implementation due to incorrect state handling in nested execution paths involving the ICS20 precompile. An attacker can repeatedly utilize the same token balance within a single transaction by exploiting recursive calls where state updates are not properly reflected in the outer execution context, potentially resulting in unauthorized asset transfers and financial loss. This is only exploitable if the ICS20 precompile is enabled in the affected environment.
This vulnerability can be mitigated by disabling the ICS20 precompile.