nexeraDecentralized finance protocol suffered a major security breach that resulted in the loss of $1.5 million worth of NXRA tokens. The incident highlights ongoing vulnerabilities within the DeFi ecosystem and underscores the need for enhanced security measures.
Nexera’s response to the hack
Nexera, which aims to integrate DeFi with traditional finance, has been targeted by hackers who exploited its smart contracts. The breach was identified and reported by Cyber on August 7, and the company said:
“Our systems have detected suspicious transactions involving your proxy contract. An address has taken ownership of your proxy contract and upgraded it. Shortly afterwards, that address used the withdrawal control function to transfer all of your $NXRA tokens.”
Upon discovery of this exploit, Nexera suspended its token contracts and strongly advised investors to stop trading NXRA tokens to prevent further losses.
Hacker Movements and Money Laundering Tactics
Malicious actors have already started liquidating the stolen NXRA tokens and converting them into Ether (ETH), Cyvers reported:
“The address is currently selling all tokens for $ETH, with some funds already tied to the $BNB chain. The total estimated loss is approximately $1.5 million.”
Hackers often use these tactics to hide the source of stolen funds, typically using cryptocurrency mixers like Tornado Cash to make it difficult for cybersecurity experts to trace the funds.
Connection to previous exploits
Onchain investigator ZachXBT has revealed that the hacker behind the Nexera exploit is also linked to other recent security breaches. ZachXBT stated in a Telegram post on August 7:
“The attacker has on-chain connections to recent private key breaches such as SpaceCatch, Concentric Finance, OKX DEX, Serenity Shield, Reach, and more.”
Broader meaning and recent trends
This breach comes just a day after Ronin Network suffered a $9.8 million exploit, with the alleged white-hat hacker returning the stolen funds. These incidents highlight ongoing security concerns within the DeFi sector. The Nexera exploit also followed a massive $230 million hack. WazirXThe second-largest cryptocurrency theft of 2024 has occurred.