Cyber Security News

Nexus Mutual founder loses $8 million NXM in a targeted hack

TL:DR Breakdown:

  • The founder of DeFi protocol, Nexus Mutual, has reportedly lost about $8 million in NXM tokens to an unknown attacker.
  • This was a targeted personal attack on the founder and didn’t affect the platform’s system. So, the members’ funds are safe, per the tweets.

Hugh Karp, the founder of decentralized finance (DeFi) protocol, Nexus Mutual lost about $8 million to an unknown attacker earlier today. The development was confirmed in the official Twitter handle of the protocol, stating that investigations are currently underway about the event and how they can intercept the attacker from laundering the funds. Meanwhile, the notice on Twitter assured that their system wasn’t affected; only Karp’s address.

Nexus Mutual confirms founder’s wallet breach

Nexus Mutual is a decentralized finance coverage platform. According to the tweets, the unknown attacker somehow managed to gain remote access to the founder’s personal computer. The hacker tricked him into authorizing a different transaction after he/she modified the metamask extension. As a result, millions were transferred from Karp’s hardware wallet to the attacker’s address, Nexus Mutual narrated. 

Precisely, the founder of Nexu Mutual lost about $8.2 million in the NXM token (370,000 NXM) in the targeted personal attack. Already, some funds have been withdrawn from 1inchExchange, as Nexus Mutual reported. Meanwhile, only Karp was affected in the attack, as the protocol said that there won’t be any subsequent risk to the DeFi protocol nor the participating members. “The mutual is not impacted; the pool of funds and all systems are safe.”

NXM token update

The attack today is likely to affect the price performance of the cryptocurrency NXM, although the system wasn’t affected. Reportedly, the stolen funds account for about six percent of the crypto’s circulating supply. According to the information on Coinmarketcap, the cryptocurrency is down by about 21 percent on a 24hrs count. Currently, it’s trading at a price of $17.33.

This post was last modified on January 8, 2021 1:18 am

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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