Nexera Hack: Hacker Swaps 14.7 Million NXRA Tokens for $450,000 USDT

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PeckShield, a blockchain security firm, reported on X that the decentralized finance platform Nexera had suffered a loss of 47 million NXRA tokens, valued at approximately $1.76 million. The hacker has already exchanged 14.7 million NXRA tokens for around $450,000 in USDT.  Before this, blockchain security company Cyvers Alerts detected suspicious transactions related to Nexera’s proxy contract, warning that the total estimated loss was 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.

Immediate Aftermath

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 linked to previous exploits, including private key compromises affecting SpaceCatch, Concentric Finance, OKX DEX, Serenity Shield, and Reach. This recurring involvement underscores the persistent threat experienced and resourceful hackers pose within the DeFi ecosystem. 

The Nexera hack follows a significant exploit of the Ronin Network, where $9.8 million worth of Ether was stolen. Although a suspected white hat hacker returned those funds, the Nexera incident underscores the persistent security challenges in the DeFi space. 

Just weeks before the Nexera breach, another significant hack saw over $230 million stolen from WazirX, an Indian cryptocurrency exchange, marking the second-largest cryptocurrency theft of 2024. These incidents collectively highlight the critical need for enhanced security measures in the DeFi space to protect against sophisticated cyber threats.

• Ongoing Investigations and Security Implications

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.

Response and Future Measures

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.

Will this incident serve as a wake-up call for the entire industry? Only time will tell.

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