Hackers are in move to wipe out crypto from blockchain bridges. Blockchain Bridges allow users to transfer tokens from one network to another. They have become the prime target for hackers.
Billions of dollars of value have been wiped out off the cryptocurrency market in recent months. Crypto industry is in pain lending and trading platforms are facing liquidity crisis and many firms have been shut down.
Hackers drained almost $200 million in cryptocurrency from Nomad ( a crypto lending platform ). It allow users to swap tokens from one blockchain to another.
Nomad acknowledge the exploite in a tweet late Monday.
Blockchain security expert described the exploite as a “free for all”.Anyone with knowledge of the exploite and how it worked could seize on the flaw and withdraw an amount of token from Nomad. like a cash machine spitting money on one tap of a button.
It all started with the upgrade to the Nomad’s code . One part of the code was marked as a valid whenever user decide to initiate a transfer, which allow hackes to withdraw more money then deposited on the platform. Once attackers found out what’s going on they deployed an army of bots to carry out further attacks.
Without any prior programming experience , any user could copy the original attack .
Unlike previous attacks, Nomad hack become free for all where multiple users could exploite the bugs. Sam Sun, describe the exploite as “one of the most chaotic hack on web3”.
Nomad is known as a “bridge” a tool that allow users to exchange tokens and information between different crypto networks. They are used an an alternative for making direct transection on blockchain like Ethereum , which charges very high gas fee when lot of activities are happening at once.
More then $1 Billion in crypto assets have been stolen through bridge exploits so far in 2022, according to report from crypto compliance firm Elliptic.
In April, blockchain bridge Ronin was exploited in a $600 million crypto heist , Which US officials have since attributed to the north Korean state. In another month another crypto bridge was drained for $100 million in similar attack .