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All You Need to Know about Nomad Bridge Exploit

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VOC, Voice of Crypto, Nomad Hack

Reportedly, the crypto community noticed some strange transactions on Nomad, a cross-bridge between Ethereum and Moonbeam.

Specifically, MetaMask developer @sniko_ shared a series of transactions that paid up to 350,000 USD but still failed. Later, this person discovered the attack was an attack on Nomad, mass withdrawing WBTC, WETH, USDC, and many other ERC-20 tokens in countless small transactions.

According to user @1kbeetlejuice, in the next 2 hours, Nomad’s smart contract was drained, decreasing from 176.6 million USD to almost zero.

What Exactly Happened With Nomad?

User FatManTerra claimed that this attack was carried out by multiple accounts or even had a “foul” situation, where there were people who copied the first hacker’s transaction and changed only each address. Withdraw money to extract money from Nomad. FatMan also joked that this is the first “decentralized” attack in the crypto industry, true to the nature of the cryptocurrency sector.

SlowMist tracks the cash flow to the three wallet addresses that have taken the most money from Nomad, with a total value of up to $90 million.

Security expert samczsun later discovered that Nomad’s vulnerability stemmed from the project’s permission to grant withdrawal permission to the default root message of 0x000… Someone discovered that and proceeded to withdraw. Others then discovered the vulnerability and simply copied the first hacker’s transaction.

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Nomad has announced the closure of its cross-chain bridge to investigate the cause and warned users to be on the lookout for impostor accounts that are calling for the voluntary return of money from looters.

Hackers Send Back $9M to Nomad Bridge

Hackers returned $9 million to Nomad a day after the cross-chain bridge was exploited for $190.38 Million. The blockchain security company PeckShield says that 4.75% of the total loss has been returned so far, equating to around $9 million.

The protocol requested white hat hackers or ethical researchers to return funds in a tweet. Crypto custodian Anchorage Digital will handle and safeguard the returned assets.

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Most funds sent back seem to have been stablecoins, with $3.78 million USDC and another 2 million USDT being reclaimed by multiple addresses.

Adekunle Joshua is a cryptocurrency writer. He has a deep understanding of the technology and how it can be used to improve the world. James is a strong advocate for using cryptocurrency to make the world a better place. He wants to help people understand the technology and use it to improve their lives.

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