DeFi Protocol Nexera hit by $1.5 Million Smart Contract Hack
DeFi protocol Nexera announced earlier today that the team is investigating a crypto hack involving smart contracts containing the native token, NXRA.
Announcement
— Nexera (@Nexera_Official) August 7, 2024
The team is investigating an exploit involving smart contracts containing NXRA tokens.
While we are still finalizing our findings, there are already a couple of things that we can share:
1️⃣ The $NXRA token contract has already been paused. Trading is halted on…
According to Cyvers Alerts, the exploit has cost about $1.5 million worth of NXRA tokens in losses for the blockchain platform. The proactive Web3 security company wrote that the Nexera proxy contract was involved in a suspicious transaction that the security system has detected.
Your proxy contract has been upgraded by an address that assumed ownership. The address transferred all of the $NXRA tokens shortly after by using the withdraw admin function. All of the tokens for $ETH are currently being sold by the address, and a portion of the funds have already been bridged to the $BNB chain. An estimated $1.5 million was lost in total, the post added.
Onchain data indicates that this is not the exploiter's first malicious incident. The addresses of the exploiter are connected to multiple prior incidences of private key compromise, including SpaceCatch, Concentric Finance, OKX DEX, Serenity Shield, Reach, and many more, according to a Telegram post made on August 7 by Onchain investigator ZachXBT.
Nexera said on X that it will pause the $NXRA token contract and halt trading on decentralized exchanges while it works with centralized exchanges to stop trading. The company advised users to halt trading.
After 3 hours, Nexera posted an update on X that the exploit has been identified and the team acted fast and managed to stop further damage. As it continues with the investigation, the company stated that it has started talking with law enforcement and working with Hypernative, a Web3 security platform, to trace the exploit's source. Deposits and withdrawals have already been stopped by KuCoin, and trading will end in a few hours. MEXC has already stopped trading and suspended withdrawals and deposits. The post added that DEXes have stopped all trading, and bridging on Nexera Bridge has been suspended.
Even though the $1.5 million incident may seem insignificant, it happened just one day after a suspected white-hat hacker used the Ronin Network to obtain $9.8 million worth of Ether tokens. It was reported that after a few hours, the hacker returned all of the lost funds.
The Nexera hack occurred almost a month after the second-largest cryptocurrency hack of 2024, in which the exploiter stole over $230 million from the Indian cryptocurrency exchange WazirX.
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