'Nomad' Crypto Bridge Exploited - $190M Gone
From almost $190M TVL to $11,369 within 24 hours; Nomad now working together with law enforcement to recover funds
The ‘Nomad’ bridge got exploited; the TVL crashed from almost $200M to currently not even $12,000.
So, what happened here? Usually, bridges are locking up tokens in smart contracts on one chain, before issuing those tokens again on another blockchain; also called ‘wrapped’ tokens.
In the case of Nomad, it was precisely these smart contracts that were exploited. The special feature here was that no great technical knowledge was required to profit from the exploit:
‘All you had to do was find a transaction that worked, find/replace the other person's address with yours, and then re-broadcast it.’ - @samczsun
In total, about $190M in assets (WBTC, WETH, USDC and some others) were stolen; but, there were also whitehats who got aware of the exploit, acted proactively and are ‘safeguarding funds’, according to the Nomad team which is now also working with law enforcement to ‘identify the accounts involved and to trace and recover the funds’.
Just another day in crypto, eh?