In a series of continued exploits and hacks that the crypto industry has been experiencing as of late, the Nomad bridge hacked news doesn't come as a shocking surprise.
Nomad, a cross-blockchain transfer bridge, was recently exploited and drained for $200 million. The current market crash, alongside NFTs crashing to the floor, made crypto enthusiasts cautious to invest in new cryptocurrency releases.
While the top exchanges are listing new cryptos each day, hacks like these create an air of panic among investors. Let's take a look at how the nomad bridge was hacked in an unprecedented manner.
Almost $200 Million Drained From Nomad Bridge Hack
The security of cross-chain bridges is yet again being questioned as Nomad Bridge, a renowned cross-chain bridge that facilitates cross-blockchain transfers was hacked and drained of nearly $200 million funds.
The bridge, like other cross-chain bridges, permits users to transfer tokens from one blockchain to the other.
The hackers reportedly exploited a vulnerability of the Nomad bridge's smart contract.
The consequences of the hack were pretty rough for Nomad. According to DeFi TVL aggregator DeFillama, the firm has lost $190 million worth of funds. The aggregator also reports its TVL has dropped to $12,750 from its earlier high of $190 million.
In the aftermath, Nomad tweeted it is aware of malicious activity currently prevalent on the network and is investigating.
Nomad Bridge further warned users of impersonators approaching them pretending they can return stolen funds.
What Happened To Nomad?
Explaining the exploit, researcher Samczsun added details on Twitter, stating the hackers made use of a vulnerability that the platform had encountered after its recent update.
After undergoing its most recent update, one of Nomad's smart contracts was jeopardised. This made it easier for anyone to withdraw and steal other people's tokens.
Fears grew intense when the network reported suspicious activity at 9:32 PM UTC, when a dubious transaction resulted in 100 WBTC withdrawal worth $2.3 million.
The incident has reported a theft of diverse crypto tokens. These include: WBTC, WETH, USDC, FRAX, QCT, HBOT, IAGON, DAI, GERO, CARDS, SDL, and CHARLI3.