October 5, 2022

Nomad has announced that it has recovered $22 million after a $190 million hack. Data from Etherscan showed that Nomad had recovered about $22.4 million (11.4%) of the $190 million spent during the hack after the team announced a reward.

The amount recovered from Nomad is now double the $9 million returned to Nomad by ethical hackers. Nomad saw more of the stolen funds return after the protocol announced a 10% reward.

200 million dollar exploit

Nomad suffered a serious hack on August 1, as hackers exploited a vulnerability that made it possible to deplete almost all of the protocol’s funds, which totaled around $200 million. Hundreds of hackers, incl white hat hackers intending to return funds to the protocol, orchestrated the attack. The attack once again brought the security of cross-chain bridges into focus. The Nomad team confirmed the feat, stating,

“An investigation is underway and leading blockchain intelligence and forensics companies have been retained. We have notified law enforcement and are working around the clock to address the situation and provide timely updates. Our aim is to identify the accounts involved and trace and recover the funds.”

Source of vulnerability

The cross-chain bridge had a critical vulnerability that entered the public domain, attracting the attention of would-be hackers. Sources said that Nomad developers presented the vulnerability during a regular smart contract update. After the exploit, the Nomad team announced that they would pay a 10% reward to any hacker who returned the money to a specified return address. The group also assured the hackers that no legal action would be taken against any hacker who returned the money.

For its part, Nomad is working with law enforcement officials and agencies to investigate the hacking. It has also announced a partnership with an on-chain analytics company, TRM Labs, to track funds across all addresses involved in the attack.

The spate of encryption breaches continues

The Nomad exploit was listed as the 8th biggest crypto hack of all time as the wave of recent crypto exploits continues to rumble. According to security firm Chain Analysis, the hack brings the amount stolen from cross-chain bridges to a staggering $2 billion. There were a total of 13 exploits related to cross-chain bridges, the largest of which was the Ronin attack that stole $615 million. Ronin is connected to the hugely popular game Axie Infinity. In another recent hack, $5.2 million worth of cryptocurrency was stolen from around 8000 wallets connected to Solana.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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