The decentralized finance platform Nemo Protocol experienced a cyberattack that resulted in a loss of $2.4 million in stablecoins.
Circumstances of the Cyberattack
The cyberattack on Nemo Protocol, operating on the Sui blockchain, occurred amid active user engagement. Blockchain security firm PeckShield was the first to report the incident. The attack led to the transfer of stolen USDC from Arbitrum to the Ethereum network.
Official Statements from the Nemo Team
Following the incident, the Nemo Protocol team confirmed the cyberattack and addressed the community via Telegram. "Dear Nemo community, a security incident occurred last night and our Market pool was affected. We are investigating the matter and have suspended all smart contract activity for the time being," stated the team. It was also noted that the Nemo app would undergo maintenance on Mondays and Tuesdays.
Security in the DeFi Industry
Despite the team's reassurances that assets in all vaults are safe, the exact cause of the attack has yet to be disclosed. This incident once again highlighted that security vulnerabilities still pose serious risks in the DeFi industry.
The cyberattack on Nemo Protocol underscores the importance of security measures in decentralized finance, a pressing topic for the entire investing community.
