Cryptocurrency

Crypto firm Nomad offers 10% reward after $190 million hack

Cryptocurrency company Nomad is offering a bounty to recoup funds spirited away in a $190 million hack that again highlighted security vulnerabilities in the digital-token sector.

Anyone returning at least 90% of stolen tokens will be viewed as a so-called white-hat hacker that seeks to spotlight vulnerabilities rather than make malicious gains, according to a statement from Nomad. The remaining 10% would effectively become the reward.

“We will not prosecute white hats,” Pranay Mohan, chief executive officer of Nomad, said in the statement. “But we will continue to work with our partners, intelligence firms, and law enforcement to pursue all other malicious actors to the fullest extent under the law.”

Nomad is a bridge protocol, a tool for transferring tokens across blockchains to make different networks interoperable. Bridges have become one of the crypto sector’s weak points after numerous hacks — some $2 billion worth of tokens have been swiped from them in 2022, consultancy Chainalysis estimates.

Nomad has recovered around $20 million of the $190 million so far, based on data from Etherscan, a platform for analyzing the Ethereum blockchain, as well as the bridge provider’s estimates.

Nomad said it is working with crypto forensics specialist TRM Labs and law enforcement to identify hackers. Nomad has also partnered with crypto platform Anchorage Digital to accept and safeguard retrievable funds.

The attack on Nomad emerged earlier this week. The crypto industry suffered another black eye soon after when hackers targeted the Solana ecosystem Wednesday, with thousands of wallets affected.

Newsletter

Top JSE indices

1D
1M
6M
1Y
5Y
MAX
 
 
 
 
 
 
 
 
 
 
 
 
You must sign in to view or make comments.

or