DeFi protocol Nemo hacked for over $2.4 million

Nemo Protocol, a DeFi platform supported on the Sui blockchcian, was breached on Monday, September 9. As reported by cyber security firm PeckShield, over $2.4 million were stolen from Nemo as part of the attack.

The Nemo protocol provides yield infrastructure services as well as yield tokenization process. This lets users trade or leverage yields more efficiently, The Block explained in its report on Monday.

Nemo first broke news about the incident to its community on Telegram and then went on to post details on X.

“Nemo experienced a security incident occurred last night, impacting the Market pool. All Vault assets remain untouched. We plan to share when more information becomes available,” it claimed in its post.

The Nemo team has launched an investigation into the matter. As a precautionary step, all smart contract activities have been paused for the time being.

As per PeckShield, the attacker exploited a vulnerability in Nemo’s system to illegally transfer a significant amount of USD Coin (USDC) from the Arbitrum network to the main Ethereum network.

Before Nemo updated its community, members had started to face issues accessing the protocol. They also complained about having lost funds.

For now, more details on how the hack happened and how Nemo plans to reimburse the affected users, remain awaited.

Now that centralized exchanges are seeing a major overhaul in compliance requirements, it seems that cybercriminals have shifted their attention towards DeFi platforms.

Last week, for instance, the Bunni decentralized exchange (DEX) lost over $8.4 million in various crypto tokens. The platform has posted an analysis of the attack, claiming that the team will “explore every avenue we can to recover the stolen funds.”