Attacks on coinbase platforms have become a recurring theme in recent weeks, with the Nomad Protocols becoming the most recent victim.
On Monday, the Coinbase on-chain network was hacked, with sources claiming that up to $150 million was lost in the latest attack.
The on-chain blockchain protocol informed its users of the situation after confirming the attack. The company also warned users to be aware of wannabes who may try to exploit the situation by impersonating as Nomad’s team.
The network is aware of wannabes attempting to persuade unwary victims to shift their valuables to another place for safekeeping.
Nomad has yet to publish guidelines on this, and users are advised to ignore correspondence from sources other than the official website. Until the inquiry is completed, all transactions have been disabled.
How the Exploit Occurred
The assault occurred following the discovery of an unusual activities in which the exploiter took 100 wrapped Bitcoin (WBTC) worth $2.3 million from the on-chain platform. WBTC was not, however, the only token removed off the bridge.
Wrapped Ether (WITH), USD Coin (USDC), Dai (DAI), GeroWallet (GERO), Frax (FRAX), and more are among the others.
Meanwhile, the latest exploit looks to be distinct from other breaches this year. The exploit has benefited hundreds of accounts in the current hacking scenario.
The accounts in question got tokens directly from the Nomad bridge, a first in the crypto market. Furthermore, the pattern employed by the exploiters to shift tokens differs from earlier hacking cases.
The hacker deleted tokens of the same denominations and frequency from the bridge. During the same time frame, the attackers processed over 200 transactions.
Expanding Bridge Exploits
Attacks on blockchain bridges have become a typical hacking incidence in recent years. Traders have already lost millions of dollars as a result of bridge exploits, prompting calls to ban cross-chain financial transfers on bridges.
Bridges have become a prime target for exploiters as a result of the multi-chain dimension.
Ethereum co-founder Vitalik Buterin has also raised reservations about establishing a bridge to transfer funds between networks.
It’s worth mentioning that bridges are divided into two types: trustless and trusted, with both vulnerable to hackings. However, there are techniques to make them less vulnerable to attackers and less impactful on blockchain initiatives.
Because the Web3 ecosystem is a linked area, multifaceted coordination amongst blockchain platforms is required. As a result, blockchain protocols can collaborate to safeguard the area for transactions and unrestricted payment options.
Furthermore, DEXs and CEXs working together may readily follow down any questionable payments between platforms executed by hackers.
Know-your-customer (KYC) verification is one of the most important topics platforms may investigate in order to limit the frequency and likelihood of attacks in the crypto space.
More stringent measures are required to stem the tide of bridge exploits, which is a difficult obstacle to overcome.