PeckShield, a leading blockchain security firm, reported on X that the decentralized finance platform Nexera has suffered a major breach, resulting in the theft of 47 million NXRA tokens worth approximately $1.76 million. The hacker has already exchanged 14.7 million NXRA tokens for around $450,000 in USDT.
Before this, Cyvers Alerts, another security firm, had noticed suspicious transactions related to Nexera’s proxy contract and estimated the total potential loss to be around $1.5 million.
Details of the Hack
On August 7, Cyvers, a blockchain security firm, detected the exploit. The attacker managed to gain control of Nexera’s proxy contract, which allowed them to upgrade the contract and subsequently use the withdraw admin function to transfer all NXRA tokens to their address. The malicious transaction was executed swiftly, showcasing the hacker’s sophisticated approach.
NXRA Takes a Nosedive
The NXRA token price plummeted 140% to a record low of $0.01815 soon after the news.
The attacker involved in this incident is reportedly connected to other high-profile breaches, including private key compromises at SpaceCatch, Concentric Finance, OKX DEX, Serenity Shield, and Reach. This pattern highlights the ongoing threat from highly skilled hackers in the DeFi space.
This attack on Nexera follows the significant Ronin Network breach, where $9.8 million worth of Ether was stolen. Although suspected white hat hackers returned the funds, the Nexera incident underscores the continuing security challenges in DeFi.
Just weeks before, over $230 million was stolen from WazirX, an Indian cryptocurrency exchange, marking the second-largest crypto theft of 2024. These events highlight the urgent need for stronger security measures in the DeFi sector to protect against sophisticated cyber threats.
An Urgent Need to Ramp Up Security
Blockchain investigator ZachXBT noted that the hacker’s address is linked to other recent private key compromises, including attacks on platforms like SpaceCatch, Concentric Finance, OKX DEX, Serenity Shield, and Reach. This pattern suggests the attacker is a serial exploiter with considerable experience in breaching DeFi protocols.
In response to the hack, Nexera paused its token contract and advised investors to stop trading NXRA tokens to prevent further losses. The protocol’s development team is working to secure the network and recover the stolen assets. This incident serves as a stark reminder of the critical importance of robust security practices and continuous monitoring within the DeFi ecosystem.
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Will this incident serve as a wake-up call for the entire industry? Only time will tell.