Earlier this week, the founding father of DeFi insurer Nexus Mutual was hacked to the tune of $eight million in NXM
The unknown hacker received entry to Hugh Karp’s gadget utilizing a malware assault and adjusted its MetaMask file extension. The corporate misplaced 370,000 native NXM tokens that had been transferred to the hacker’s tackle. On the time of the incident, the stolen tokens had been price near $eight million.
The hacker transformed the stolen funds into wrapped NXM (WNXM) and moved them to an tackle ending in 2e2b.
“The attacker gained distant entry to his pc & modified the MetaMask extension, tricking him into signing a unique transaction which transferred funds to the attacker’s personal tackle. The attacker accomplished KYC 11 days in the past after which switched membership to a brand new tackle on Friday, three December”, the corporate wrote.
A weird flip of occasions
What has since unfolded can solely be described as outré. The hacker wrote to Karp and the Nexus Mutual workforce asking for 4,500 Ethereum tokens (ETH). The attacker additional threatened to dump the WNXM tokens available in the market in a method that might dent the venture’s present market place if the calls for weren’t met. The requested Ethereum is the equal of almost $three million.
The attacker’s embedded message learn, “Hi there Hugh. I cannot promote WNXM any extra till WNXM recovers his worth otherwise you ship me 4.5k ETH. For those who want any negotiation with me, ship msg to my eth tackle. Following are your addresses. You might be wealthy, Hugh.0x87B2a7559d85f4…”
What this implies for the DeFi insurer
Based mostly on the present scenario, issues don’t look good for the DeFi insurer. It is because Uniswap is the one decentralised change that the hacker can use to keep away from getting frozen out. Right here is the place the issue arises.
Uniswap solely has meagre liquidity for WNXM in comparison with different centralised exchanges, and dumping the tokens there may make the coin nosedive. The attacker barely left room for negotiations, with the one allowance being “ship msg to my eth tackle”.
The Nexus Mutual workforce is collaborating with regulation enforcement companies to trace the hacker, and evidently they’re closing in on the attacker. The workforce shared a reassuring tweet yesterday after Karp alluded to have gained entry to the attacker’s IP and different particulars which could assist to nail the hacker.