It happened again guys. Another digital currency theft is in the books. This time, it’s the Nomad crypto bridge platform The latest victim of a cyber attackhaving lost as much as $190 million at the time of writing.
Nomad lost a lot of money
Nomad is a unique company in that it ties the blockchain together. This makes many blockchain technology platforms compatible and opens a lot of doors that often prevent cryptocurrency institutions from working with each other.
These types of attacks are becoming more and more common as cryptocurrency exchanges have beefed up their security measures in recent years due to the large number of attacks that occurred in the past. Thus, they are becoming more difficult targets, and bridge companies – due to the paths they create to separate digital enterprises – become new objects of the passions of many hackers.
Tom Robinson, chief scientist at blockchain analytics firm Elliptic, explained how Bridge works in a recent interview. He said:
I deposited my bitcoins to the bridge. In exchange for doing this, I receive Bitcoin tokens on the Ethereum blockchain. Then I can transfer this bitcoin token, which is known as the encapsulated asset, through the Ethereum blockchain… You need to trust that the bridge already has the assets that support these tokens. They have massive amounts of assets backing those tokens… they are just huge attractions. They only have a huge amount of crypto assets, so they have clear goals.
So far, up to $1.83 billion in cryptocurrency has been stolen from bridge companies. Much of that – about $1.21 billion – was stolen in the first eight months of 2022 alone, which means hackers are getting better informed about how companies like Nomad operate.
A similar scenario recently occurred with Harmony, a crypto bridge company located in Northern California. The company lost up to $100 million in crypto funds practically overnight, with several blockchain analysts describing North Korea as the likely culprit behind the attack. The country has long been engaged in cryptocurrency theft and related activities as a means of financing its ongoing nuclear program.
Nomad recently issued a statement to its clients saying it is working with law enforcement agents to better understand what happened and find a way to get the money back. Badawi said:
We are working around the clock to address the situation and have notified law enforcement and retained leading companies in the field of blockchain intelligence and forensics. Our goal is to identify the accounts involved, track and recover funds.
Not long ago, Nomad participated in a funding round that raised more than $22 million in new money from institutions like Coinbase and Crypto.com.
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