$190M Hack via Nomad Bridge

Unfortunately, we have another hack in the DeFi space, and this time it is with the Nomad Bridge. It is an essential part of the interoperable ecosystem allowing assets to move from chain to chain. Earlier this year, Nomad had raised $22.4M in seed funding to develop the bridge further.

Currently, at this point, Nomad has suspended transactions and movements of assets on their bridge.

Reports from multiple news outlets started appearing around 11:15 pm Tuesday, Coordinated Universal Time (UTC).

Twitter users broke down the entire hack and how the hackers exploited the vulnerability.

1/ Nomad just got drained for over $150M in one of the most chaotic hacks that Web3 has ever seen. How exactly did this happen, and what was the root cause? Allow me to take you behind the scenes 👇 pic.twitter.com/Y7Q3fZ7ezm

— samczsun (@samczsun) August 1, 2022

Effect to Cardano

Unfortunately, Wingriders, a decentralised exchange built on Cardano, has a lot of assets, such as madUSDT moving from Ethereum to Cardano via the Nomad bridge. As a result, it has affected the TVL on the DEX, dropping almost 70%.

If you’ve been affected by this hack, please talk and reach out to others or talk to a mental health support group such as Beyond Blue for professional support.

Other Affected Cardano Projects

Various Cardano-related projects used the Nomad bridge to move their Ethereum-based assets over to Cardano earlier this year.

This included GeroWallet, Iagon, and Charli3. Some assets from GeroWallet and Iagon were saved but unfortunately, not all were saved.

White hat hackers managed to save some assets where they could.

Nomad bridge is now completely drained.

Together with @RugDocIO we did a whitehat of the remaining large token balances (about $1.5m, we were definitely late) which will be returned to the affected projects.@IagonOfficial @GeroWallet @covalent_hq please DM.

— Paladin Blockchain Security (@0xPaladinSec) August 1, 2022