Cryptocurrencies . 4 Aug 2022
Read news for me
On Monday, a vulnerability in the cross-chain bridge Nomad leads to a horrible $200 million theft. Nomad’s TVL dropped from $200 million to $15k in less than a few hours.
Tokens stolen from the bridge include WBTC, Wrapped Ether, USD Coin, Frax, Covalent Query Token, Hummingbird Governance Token, and Card Starter.
Different from other bridge attacks, hundreds of users exploited the bug in Nomad’s Bridge, making its recovery options limited.
Exploiters have sent back a total of $16 million to Nomad following the company’s official announcement pleading white hat hackers to resend the drained funds.
Dear white hat hackers and ethical researcher friends who have been safeguarding ETH/ERC-20 tokens, tweeted Nomad.
As a result, a few whitehat exploiters send tokens to the designated Ethereum wallet address.
Blockchain security firm, PeckShield has notified 3 major hacker wallets that hold more than 50% of the funds drained from the cross-chain bridge.
As of this writing, a total of 6.2 million USDC, 92.7 WBTC, 2 million USDT, 2 million DAI and other tokens amounting to $16 million were returned.
The amount is estimated to have a total value of approximately 9% of the total funds drained.
Nomad also partnered with custodian bank Anchorage Digital to accept and safeguard Ethereum (ETH) and ERC-20 tokens received from the exploiters.
The exact details of the exploiters are still not available. However, Nomad unveiled that it works with a leading chain analysis/intelligence firm to keep track of the funding flow and identify the recipient wallets.
Considering the timeliness of the fund return, it went on to assert that all the individuals involved are prepared to take the relevant action in the future.