Nomad cross-chain protocol hack losses estimated at $8.9 million

Nomad cross-chain bridge losses total about $8.9 million, with liquidity restoration efforts underway.

The losses of users of the Nomad cross-chain bridge in the Cosmos ecosystem as a result of the hacker attack amounted to $8.85 million. The team is working to restore the project’s liquidity.

4/4 Read the article on KeepingUpWithCosmos for more details.

Be careful trading anything on Evmos. Remember, all USDC on Evmos is potentially worth nothing right now.https://t.co/3VkyNBXEP4

— John Galt (@lurkaroundfind) August 2, 2022

The developers explained their calculations by valuing the assets that were locked in the protocol at the moment of the breach on August 2.

Actual losses could have reached $190 million, as wrapped USDC on the Evmos network lost their value due to token theft from the project’s address on the Ethereum blockchain. A similar situation occurred with other wrapped assets.

According to DeFi Llama, TVL of the project stands at $98,263. Before the attack, the metric exceeded $180 million.

The team expects to recover a portion of the stolen funds. Many users took advantage of the vulnerability, but some did so to safeguard part of the project’s assets. They expressed willingness to return the funds in the future.

Please note — this is the ONLY official funds recovery address. If you have any questions or want to confirm, please email recovery@nomad.xyz

— Nomad (⤭⛓🏛) (@nomadxyz_) August 3, 2022

The developers estimate they will be able to return 10, 20 or 30 cents for every stolen dollar. They declined to give a precise assessment.

The incident did not affect CW-20 tokens on the Evmos network, nor the project’s own EVMOS tokens. It was the cross-chain protocol that was hacked, not the blockchain itself.

Many users after the attack mass-converted USDC and other Ethereum assets into EVMOS. This led to substantial volatility in the latter. According to CoinGecko, the token price surged more than threefold—from $1.40 to $4.79—before returning to around $1.48.

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

Earlier, on June 24, the Harmony blockchain platform reported an attack on the Horizon cross-chain bridge, in which attackers stole assets worth around $100 million.

Read ForkLog’s bitcoin news in our Telegram — news, rates and analytics.