Nemo protocol Outlines Steps After $2.59M Attack
Nemo protocol recently released a detailed report on a $2.59 million exploit that occurred on September 7. The attack was due to unaudited code introduced by a developer.
The vulnerability let hackers manipulate the protocol’s flash loan and pricing functions. This drained assets from Nemo’s liquidity pool. The stolen funds were then bridged to Ethereum via Wormhole CCTP.
The team paused operations when they noticed unusually high yields. Most stolen funds were already transferred off-chain by then. emergency fixes included disabling the flash loan function and correcting the pricing tool.
Nemo is now planning extensive security enhancements. They’ll bring in multiple security firms for independent reviews of their updated code.
Key future measures include:
- Stricter upgrade controls
- More thorough audits
- Wider bug bounty programs
- Better openness and interaction
A compensation plan is being prepared for impacted users.Nemo is also collaborating with exchanges, security experts, and authorities to track down the stolen assets. Their aim is to reestablish user trust while bolstering the protocol’s resilience against future threats.
