Friday, January 27, 2023

Nomad cross-chain bridge breaches network causes $200 million in damage

In the last few months, there has been an increase in the attacks of hackers on the crypto segment. Cross-chain bridge Nomad has suffered a loss of about $ 200 million in one such attack. The platform allows users to send and receive cryptocurrencies between different blockchains. In such cross-chain bridges, tokens on one chain are usually locked in a smart contract and on other chains these tokens are reissued in a wrapped manner.

Paradigm researcher Sam Sun told about this hack attack. Told that the Nomad smart contract gave users the option to withdraw funds from transactions that did not actually belong to them. This has become a major reason for this hack attack. Sam said on Twitter, “On this bridge, users just had to find a transaction that could be activated. Then another person’s address had to be replaced with their own and then it was broadcast again.” Nomad has not given any statement regarding this. It has said in a tweet that it is aware of the matter.

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Recently, Crema Finance, based on the blockchain Solana, has lost $ 87.8 million worth of cryptocurrencies in one such attack. The hackers used a smart contract to grant loans and validate liquidity. However, the firm later canceled the smart contract to avoid further losses.

Crema Finance had said, “We are rectifying the technical snag. Simultaneously, the stolen funds are being traced. The contract will be reinstated after the investigation is completed.” The firm has taken the help of some security agencies to investigate the matter. The firm was started this year. This liquidity gives the providers the option of setting a specific price range and trading range orders on Solana. Chainalysis reported in a blog post that hackers stole and caused nearly $3 billion in damages in 251 attacks last year.

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