February 6, 2023

Nomad has announced that it has recovered $22 million after it suffered a $190 million hack. Data from Etherscan shows that Nomad has recovered about $22.4 million (11.4%) of the $190 million drained during the hack after the team announced a bounty.

The amount Nomad recovered is now more than double the $9 million that ethical hackers returned to Nomad. Nomad saw more stolen funds return after the protocol announced a 10% bonus.

$200 million investment

Nomad suffered a serious breach on August 1, in which hackers exploited a vulnerability that made it possible to drain almost all of the protocol’s funds, totaling about $200 million. Hundreds of hackers among them white hat hacker Who intended to return the money to the protocol, orchestrated the attack. The attack once again highlighted the security of the bridges via chains. The team at Nomad confirmed the exploit, saying,

“The investigation is ongoing, and the leading companies in the field of blockchain intelligence and forensics have been retained. We have notified law enforcement and are working around the clock to address the situation and provide timely updates. Our goal is to identify the accounts involved and track and recover the funds.”

source of weakness

The bridge through the chain had a serious loophole that made its way into the public domain, attracting the attention of potential hackers. Sources reported that Nomad developers introduced the vulnerability During a routine smart contract update. After the exploit, the Nomad team announced that it would pay a reward of 10% to any hacker who returns the funds to a specified return address. The team also assured the hackers that no legal action would be taken against any hacker who returned the funds.

For its part, Nomad is cooperating with officials and law enforcement agencies to investigate the hacking. It also announced a partnership with an on-chain analytics firm, TRM Labs, to track funds across all addresses involved in the attack.

The wave of cryptocurrency hacking continues

The Nomad exploit has registered itself as the eighth largest cryptocurrency hack ever, as the recent wave of cryptocurrency exploits continues to unfold. According to security firm Chain Analysis, the hack brings the amount stolen from the crossbridge to $2 billion. There were a total of 13 exploits related to Cross Bridges, the largest of which was the Ronin attack that saw $615 million theft. Ronin is related to the popular game Axie Infinity. In another recent hack, $5.2 million worth of cryptocurrency was stolen from about 8,000 wallets connected to Solana.

Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

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