Crypto bridge Nomad was exploited on August 1 for nearly $200 million. The team is investigating the attack and warned users not to send money to individuals posing as Nomad employees.
Crypto bridge Nomad was attacked, and attackers stole nearly $200 million in WETH and WBTC. The attack took place on August 1, and the team said they were aware of it and were investigating.
The attack happened within hours and almost all funds on the bridge were spent. Samczsun, researcher at Paradigm, Say Recent upgrades to smart contracts have allowed attackers to spoof transactions.
The attackers also attempted to impersonate Nomad employees to steal more funds. The team said they were aware of these impostors sending fraudulent addresses to collect funds. They clarified that they have not issued an instruction to return the bridge funds.
The bug hit Nomad hard, which has been experiencing strong growth for several weeks. Just a few days ago, the company raised $22 million in a seed round that included Coinbase Ventures, Polygon, Wintermute, Polychain Capital, Gnosis, and OpenSea.
Bridging exploits are a popular attack vector
Bridging attacks have become an increasingly popular method for bad actors. There have been several this year alone, including a massive $600 million attack on Axie Infinity’s Ronin bridge, which has just been rebooted. North Korean hackers linked to the attack on Ronin.
The wormhole was another big event, with attackers siphoned off about $300 million from the Solana Bridge. The most recent of these attacks occurred on the Harmony Horizon Bridge, where $100 million was stolen.
Security remains a top priority in the DeFi market
Security has become a top priority for DeFi projects and has been under attack for years. In 2022 alone, hackers have stolen over $1.2 billion from the DeFi space.
The team is now working on how to prevent the Bridge hack, which will be necessary if the team wants to maintain their reputation and retain users. Nomad itself is always working on new solutions, but that doesn’t mean they’re not completely invulnerable.
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