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Web3 won’t be the same after the mass Nomad bridge exploit. Unlike previous exploits, this one was not perpetrated by a group of attackers. It was a mass robbery. First, one attacker struck, and hundreds of different accounts used his trick to steal funds. The bridge had $1,000 of the $190,740,000 left in just a few hours. Unknown people took out almost all of ETH, USDC, BTC, and other less popular tokens. Blockchain security firm Peckshield pointed out that more than 41 addresses drained $152M — or 80% of the stolen funds.
Now there is a significant message on the Nomad bridge site asking a white hat hacker
The attack came days after Nomad reported that prominent crypto investors like Coinbase Ventures, OpenSea, Polygon, and Crypto.com Capital, participated in an April $22M seed round. The company was then valued at $225M (how ironic!).
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It is a cross-chain bridge between Ethereum, Moonbeam, Avalanche, Evmos, and Milkomeda. A blockchain bridge is a protocol that connects blockchains to communicate. For example, you can transfer your bitcoin to WBTC on the Ethereum (ETH) network.
The attacker used a wrong initialization of a critical parameter in the smart contract
The smart contract was initialized to approve any message with an unknown hash
What is impressive: other users only had to copy the hacker’s transaction data, replace the original address with a personal one, and that’s it – the money was rolling in! Not everyone turned out to be so bad. Some used the data they received in a way that others failed to do — to give the money back to Nomad later. For example, leadingscientist.eth.
A Reddit user under the nickname Saoibh pointed out an interesting thing. According to him, the flaw was previously detected by an external audit. But the Nomad team assured us that hacking through this bug (№19) would never happen. And didn’t fix it.
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