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Crypto Bridge Nomad Exfiltrates Nearly $200 Million in Exploit

Nomad, a bridge protocol for transferring cryptographic tokens between different blockchains, lost nearly $200 million to a security exploit on Aug. 1, according to security firm PeckShield.

As blockchain data shows, the software system ran out of funds in small batches by various accounts over several hours.

“Investigations are ongoing and leading players in blockchain intelligence and forensics are being held,” the company said in a statement. That’s it.”

The attack made Nomad the latest bridge to suffer an exploit this year. A bridge is software that allows different types of blockchains and their respective tokens to interoperate, instead of working in silos.

According to a June report from forensics firm Elliptic, bridges have been hacked frequently in recent years, with more than $1 billion stolen from bridges by 2022.

Axie Infinity’s Ronin Bridge lost about $600 million in March and Harmony’s Horizon lost $100 million in June.

The hack comes days after Nomad released the full list of investors for its $22 million seed round. The round was led by Polychain Capital, with participation from backers including Ethereal Ventures, Hack VC, Coinbase Ventures and Crypto.com Capital.

Nomad’s code, which bills itself as a “security first” cross-chain messaging protocol, had a vulnerability that allowed attackers to broadcast bogus messages and exfiltrate funds, PeckShield said.

According to PeckShield, one of Nomad’s exploiters was also involved in an $80 million hack from April from Rari Capital’s Fuse platform.

https://gulfbusiness.com/crypto-bridge-nomad-drained-of-nearly-200m-in-security-exploit/ Crypto Bridge Nomad Exfiltrates Nearly $200 Million in Exploit

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