Nomad suffers $200m hack

Hackers have been able to make away with close to $200m in cryptocurrency from Nomad, which allows consumers to swap tokens between blockchains.

The hack is the latest instance where an exploit has cost consumers a significant amount. Nomad confirmed the developments in a late tweet on Monday.

“We are aware of the incident involving the Nomad token bridge. We are currently investigating and will provide updates when we have them”, the company said. So far, there has been no information about how the hack succeeded.

However, there have already been several suggestions, with some security experts explaining that the exploit was tantamount to “free-for-all”.

Essentially, whoever knew of the exploit could use Nomad as an ATM machine to withdraw tokens, an expert cited by CNBC said.

The issue occurred with an upgrade to Nomad’s code. What followed was that every time a user decided to transfer funds, the hackers were able to request a withdrawal for that amount.

It took Nomad some time to realize what was going on but an outcry soon spread with the missing money beginning to take on bigger proportions.

The exploit, according to Analog founder and chief architect of crypto Victor Young, would make it possible for anyone without prior programming experience to just copy the code the attackers used and replicate the results.

This puts in question the security of such innovative and tech-driven platforms.

The Nomad hack is not far from the worst by now. Something similar happened earlier this year when the Ronin network was hit and $615m went missing.

Exploits to Web3 technology and cryptocurrency companies continues to plague users. Even the US Federal Bureau of Investigation has warned that there is a proliferation of rogue applications that are stealing investors’ money by soliciting them to deposit.

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Updated: 08/03/2022 — 18:00