Nemo Protocol Breach: $2.59M Hack Forces Security Upgrades

Nemo Protocol Breach Report Released, Promises Transparency to Users

The Nemo Protocol team has officially released the hacking incident report that happened on September 7, which caused the company about $2.59 million loss. Applying to users and showing transparency, they promised stronger security in the future. Nemo clears that it understands the damage caused and is committed to rebuilding trust. 

Source: NemoProtocol

A Glance At Nemo Protocol Breach

The attack began on September 7 and lasted for a short window before the protocol paused its system. Hackers took advantage of two coding errors:

• A flash loan tool that was meant for internal use was left open to the public.

• A query function that should have only “read” data was able to change important contract values. 

By combining these bugs. The attackers reached liquidity pools and stole millions worth of assets. 

Where the Stolen Funds Went

According to the report, the hackers quickly shifted the stolen crypto across different blockchains to hide it. First used the Wormhole CCTP bridge to move the funds and then transferred them to Ethereum. Right now, most of the stolen money, around $2.4 million, is still sitting in a single ethereum wallet. The team said they are working with law enforcement and exchanges to freeze the theft amount.  

Steps Nemo is Taking to Fix the Problem

After the hack, Nemo paused its contracts and started solutions in an immediate action:

• The flash loan function was permanently deleted.

• The query function was corrected so it cannot change system values.

• To prevent deployment of risky code, the upgrade process was shifted to multi-signature approval.

• Affected users will be compensating with the plan under progress.

Nemo admitted it ignored earlier security warnings and called this breach a “painful but important lesson.”

New Trend: Crypto On Targets

The increasing cases of crypto related theft are becoming a concerning point. The pattern of these acts are on hike because of the difficulty to track them down, Decentralized networks are vast and out of any central control, giving black-hats an advantage. Concealing of the robbed assets is also easy as they can frequently be transferred to different networks leaving almost impossible traces. 

Digital Finance: Boon or Curse

As the world is rapidly moving towards online networks, whether for investment or storing value. It surely eases the transactions, global connectivity, more ownerships, higher profit chances, but at the same time attracts some ill-social elements. The updated technology needed updated securities. Risks are everywhere, even assets in physical form are also not safe. By keeping management the chances of these acts can be reduced.