Nomad Bridge Exploiter Snaps up 16.8K ETH During Market Sell Off

Ethereum

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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August 4, 2024

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Nomad Bridge Exploiter is capitalizing on the low Ethereum price by purchasing a substantial amount of the crypto during the sell-off and then depositing it to Tornado Cash.

Data shared by Lookonchain, on social media platform X, shows the exploiter spent 39.75 million DAI to acquire 16,892 ETH. This purchase occurred during a market dip, allowing the hacker to buy Ethereum at a significantly low price.

Hackers bought $ETH at the bottom after the market dropped!

The #Nomad Bridge Exploiter spent 39.75M $DAI to buy 16,892 $ETH an hour ago and is depositing $ETH to https://t.co/11PfRBP2j2.https://t.co/8pwhTFSnLw

Crypto bridge #Nomad was exploited for ~$200M on Aug 2, 2022.… pic.twitter.com/9id6bxBR14

— Lookonchain (@lookonchain) August 5, 2024

On Monday, Ethereum the second largest crypto is trading down 19% at $$2,356 in the last 24 hours. Bitcoin traded 10% lower at $54,207 at 3:50 UTC. The sell-off is being seen by some as an opportunity to buy into cryptocurrencies at a discount.

Earlier today, Jump Crypto, the crypto firm of Jump Trading, also liquidated huge amounts of Ethereum to centralized exchanges (CEXs) such as Binance, OKX, Bybit, Coinbase, and Gateio.

This transaction move highlights the company’s shift in managing its Ethereum assets, possibly indicating a repositioning of its crypto portfolio or anticipating changes in the market. Moving large volumes of crypto causes extreme price swings.

Nomad Bridge Exploit in 2022

The Nomad Bridge exploit was a huge event in the crypto world in August 2022. The security breach involved the Nomad Bridge, a cross-chain protocol that facilitates the transfer of assets between different blockchains. The vulnerabilities in the bridge’s code were exploited, leading to the unauthorized withdrawal of over $190 million worth of crypto.

The incident highlighted the potential security risks associated with decentralized finance (DeFi) protocols, emphasizing the need for robust security measures.

Last year, the Nomad protocol team announced that the project had upgraded the Nomad protocol to fix the vulnerability that caused the hack and to allow users to bridge back madAssets and access a pro-rata share of recovered funds.