Dear Readers, let us delve into a tale of woe and financial folly, where a mere oversight turned into a $2.59 million headache for the Nemo protocol. It seems that in the world of cryptocurrency, the only thing more predictable than a crash is a developer forgetting to get their code audited. 🤦♂️
- In a twist worthy of a Greek tragedy, Nemo protocol’s September 7 exploit was the result of an unaudited code, carelessly tossed into the digital abyss by one of their developers.
- The hacker, with the grace of a cat burglar in a ball gown, managed to steal $2.4 million, which was then whisked away to the safety of Ethereum. 🕵️♀️💰
The Total Value Locked of Nemo protocol, once a proud figure of over $6 million, tumbled like Icarus from the sky, landing at a rather modest $1.5 million. Around $2.4 million was siphoned from the Sui (SUI)-based DeFi yield platform, a sum that could buy you a small island or, in this case, a lot of headaches. 🌴🌊
Three days after the heist, the platform released a post-mortem report, a document as thrilling as a Victorian novel, detailing the sequence of events that led to this unfortunate outcome.
a flash loan function that was, regrettably, left public instead of private, and a pricing function that, despite its name, had the ability to alter internal contract data. 🐍💰
With these vulnerabilities at hand, the hacker drained assets from Nemo’s liquidity pool, a feat that would have made Robin Hood proud, if a bit less ethical. The stolen funds were then bridged to Ethereum (ETH) via Wormhole CCTP, with $2.4 million currently sitting in the hacker’s wallet, taunting the Nemo team. 💻💸
How did the Nemo protocol exploit occur?
During the attack, the hacker manipulated the system to borrow, swap, and mint tokens, a series of actions that would make even the most seasoned financier blush. The Nemo team, noticing yields that were suspiciously high-over 30x returns in the first 30 minutes-quickly paused the protocol using a multi-signature wallet. Alas, most of the stolen funds had already made their escape. 🚀💸
In response, Nemo took swift action, removing the flash loan function and correcting the pricing tool to ensure it could no longer alter internal data. They also fixed a related bug that could have affected exchange rates. Emergency audits are now underway, and the protocol has vowed to bring in multiple security firms for independent reviews of the updated code. 🛡️🔍
Nemo protocol also plans to reset corrupted on-chain data and rebalance their liquidity pools, a process that will require the patience of Job and the tenacity of Hercules. 🏋️♂️💪
What are the next steps?
According to the post-mortem report, Nemo is preparing a compensation plan for affected users, a gesture that, while noble, is like offering a band-aid to stop a hemorrhage. The team is also collaborating with exchanges, security firms, and law enforcement to track the stolen assets and prevent the hacker from liquidating the funds. 🕵️♂️🔍
Nemo is looking at long-term changes to improve security, including stricter controls for upgrades, more robust audits, broader bug bounty programs, and a greater emphasis on transparency. For the future, the team is committed to building stronger security practices, better accountability, and closer communication with users, all in an effort to re-establish trust and resilience. 🤝🌟
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2025-09-11 15:29