Nomad, a Coinbase-backed Cross-Chain Blockchain Protocol gets Hacked

On Monday evening, attackers manipulated the cross-chain blockchain protocol Nomad. This is now the latest among several bridge exploits that have transpired this year. The exact amount is yet to be confirmed but early reports suggest that the hackers stole crypto-assets worth more than $150 million. A researcher at crypto investment firm Paradigm illustrated that a recent update to one of Nomad’s smart contracts made it easy for users to spoof transactions.

Nomad, like any other cross-chain bridges, authorizes users to send and receive tokens between different blockchains. Monday’s attack is the latest in a string of highly-publicized incidents which have drawn the security of cross-chain bridges into question once again.

The Nomad team acknowledged the exploit and informed the Twitter users about their next steps:

The Nomad team has notified that working around the clock with Law enforcement to address the situation and provide timely updates. Their goal is to identify the accounts involved and to trace and retrieve the funds.

Similar hack news: Solana’s Liquidity protocol Cremafinance loses $8.7 million in a Hack

Insights into Nomad Hack

Coinbase-based protocol Nomad

It all started with a suspicious transaction removing 100 encased Bitcoin (WBTC) worth $2.3 million from the bridge. Regardless, the incident has seen a number of tokens exploited from the bridge. This includes the likes of Wrapped Ether (WETH), Covalent Query Token (CQT), USD Coin (USDC), IAGON (IAG), Frax (FRAX), Hummingbird Governance Token (HBOT), Card Starter (CARDS), GeroWallet (GERO), Dai (DAI), and others.

Interestingly, this hack has been quite distinct from other bridge exploits that occurred in 2022. During the hacking event, hundreds of addresses acquired tokens directly from the bridge.

Also, hackers removed all of these tokens in an uncommon pattern. They removed tokens from the bridge in equal denominations and attackers completed over 200 transactions each with precisely 202,440.725413 USD.

Bridge exploits have been a very standard form of exploit over the last years. Millions of dollars of investors’ funds have been lost in different hacks. In the past, Ethereum co-founder Vitalik Buterin has raised concern over the use of bridges for cross-chain transfer of funds.

Hungry for more information?

NFT Calendar from NFTHi

Check out the Latest NFT News!

For more interesting updates on NFTs, connect with NFTHI on Twitter and Instagram.

Join us on Telegram!

NFTHI does not recommend any kind of Investment in NFTs or NFT trading. All the strategies are merely educational references.

Conduct thorough research before you start with NFTs

Share This Post

Related Posts

Real Madrid & FC Barcelona file Web3 Trademarks

Real Madrid and Barcelona, two Spanish football clubs and...

Disney’s Cheif Executive reveals the roadmap for Metaverse at D23 Expo

Walt Disney Co has outlined the contours of a...

How to Get a High-Resolution High-Quality Metaverse and NFT Images

Metaverse and NFT images can either be downloaded from...

Open, Interoperable, and Metaverse are better for everyone believes Mark Zuckerberg

Mark Zuckerberg strongly shared his belief that an open,...

Gatorade Is Molding a “Virtual Beverage” for the Metaverse

Web3 trademark applications have been submitted by the corporation...

Abu Dhabi Launches Initiative to offer Free Crypto and Blockchain Domains to Women

Only 12% of individuals who work in blockchain are...