Another one Exploit was found by hackers this time drained nearly $200 million from cross-chain bridge Nomad.
Nomad Bridge suffers from hacker attack
Nomad is a cross-chain bridge solution that makes it possible Moving tokens between different blockchains by wrapping them via smart contracts.
Unfortunately for them and the many affected users, someone was able to find an exploit and use it to their advantage wasting around $190 million
Nomad Twitter account Tweeted the following:
“We are aware of the Nomad Token Bridge incident. We are currently investigating and will provide updates as soon as we have them.”
We are aware of the Nomad Token Bridge incident. We are currently investigating and will provide updates as soon as we have them.
— Nomad (⤭⛓🏛) (@nomadxyz_) August 1, 2022
Affected assets include packaged versions of Bitcoin, Ethereum, and several stablecoins like USDT and USDCall of which have been used cross-chain between different blockchains, including Ethereum, Avalanche and Cardano.
To learn more and dive behind the scenes of the hack, here’s one detailed breakdown by twitter user samczsun:
1/ Nomad just got ripped off over $150 million in one of the messiest hacks Web3 has ever seen. How exactly did this happen and what was the cause? Allow me to take you behind the scenes 👇 pic.twitter.com/Y7Q3fZ7ezm
— samczsun (@samczsun) August 1, 2022
Nomad claimed to be Safety first and also recently raised $22.4 million in a seed round led by Polychain Capitaltaking the Nomad company’s valuation to $225 million.
Cross-contamination affects Cardano users
Bridges between different blockchains were the Favorite target of hackers due to the many vulnerabilities that can arise if smart contracts have not been thoroughly tested for vulnerabilities.
That Nomad Bridge was one of the first cross-chain solutions that brought packaged versions of bitcoin, ether, and stablecoins to the Cardano ecosystem. These assets were available on wing rider for example a DEX on Cardano which enabled yield farming via liquidity pools using these assets.
Here’s what wing rider had to say about the unfortunate incident:
“Driver, a very sad day for Cardano. Nomad Bridge exploits led to many consequences.
Your Cardano assets and WRT tokens are safe on WingRiders! The platform and smart contracts are technically unaffected.
Bridged assets madUSDC, madUSDT, madBTC, madETH are affected!”
🚨Rider a very sad day for Cardano. Nomad Bridge exploits led to many consequences.
Your Cardano assets and WingRiders WRT tokens are safe! The platform and smart contracts are technically unaffected.
Bridged assets madUSDC, madUSDT, madBTC, madETH are affected! pic.twitter.com/ll1QamvBlE
— WingRiders (@wingriderscom) August 2, 2022
That Milkomeda EVM Layer 2 protocol which was launched on Cardano also commented on the Nomad Bridge exploit:
“We are aware of the Nomad exploit. Unfortunately we cannot control what happens to other projects. This will not impact Milkomeda’s base protocol, but Nomad is one of several bridges being deployed to Milkomeda, so users of Nomad-based assets on Milkomeda & Cardano will be affected.”
We are aware of the Nomad exploit. Unfortunately we cannot control what happens to other projects. This will not affect Milkomeda’s base protocol, but Nomad is one of several bridges being deployed for Milkomeda, so users of Nomad-based assets on Milkomeda and Cardano will be affected.
— Milkomeda (@Milkomeda_com) August 2
Milkomeda has recently shown itself on the positive side reported 7,485,720 transactions and 96,026 wallets since launch.
Conclusion
We are reminded of this with every hack in crypto the risks that this emerging space entails. The famous “Move fast and break things” Motto resonated Mark Zuckerberg in relation to the creation of software and apps cannot be applied in blockchain development as millions if not billions of dollars are at stake.
There is a need for one scientific approach that uses the peer review process to ensure that the protocols and smart contracts are free of vulnerabilities, bugs or exploits. If that means Slow down development to protect user funds, then be it. Better to be safe than sorry.
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