Hackers Drain Nomad Cross-Chain Protocol of Over $90 Million

The Nomad cross-chain protocol was subjected to a hacker attack, resulting in attackers siphoning off crypto assets totaling more than $90 million. This was reported by researchers SlowMist.

🚨SlowMist Security Alert🚨@nomadxyz_ , a cross chain protocol was recently hacked causing majority of their funds to be stolen.

We used @MistTrack_io and traced ~90M to the following 3 addresses here.

Follow us as we continue our investigation into this exploit. pic.twitter.com/HSV5SPU33J

— SlowMist (@SlowMist_Team) August 2, 2022

Using the MistTrack platform, analysts traced the movement of funds to three Ethereum addresses. The majority of stolen assets consist of wrapped assets like WBTC and the stablecoin USDC.

Here’s the addresses and how much is in each one.

Address 1: 0x56D8B635A7C88Fd1104D23d632AF40c1C3Aac4e3 ~$47M

Address 2: 0xBF293D5138a2a1BA407B43672643434C43827179 ~39.7M

Address 3: 0xB5C55f76f90Cc528B2609109Ca14d8d84593590E ~$8M

— SlowMist (@SlowMist_Team) August 2, 2022

Paradigm researcher going by the handle samczsun assessed the value of the withdrawn assets at $150 million.

A roughly similar amount is mentioned in PeckShield researchers’ tweet. According to them, the funds were sent to 41 addresses.

Nomad representatives confirmed the incident and assured users that they are investigating what happened.

As of this writing, TVL of the Nomad platform stands at a mere $10,937, though shortly before the incident the figure had exceeded $180 million.

The Nomad protocol uses fraud proofs, as in Optimistic Rollup. The technology eliminates the need for multisignatures, validators and oracles.

In April, the developers of the cross-chain bridge Nomad raised $22 million following a seed round led by Polychain Capital.

Read ForkLog’s Bitcoin news on our Telegram — crypto news, prices and analytics.