This incident, caused by a smart contract exploit, highlights ongoing vulnerabilities within the DeFi ecosystem.
Cyvers, a cybersecurity firm, revealed the breach on August 7th, reporting suspicious activity with Nexera’s proxy contract.
Smart Contract Exploit Reveals Nexera’s DeFi Vulnerabilities
The attacker then exploited the contract’s administrative functions to withdraw all NXRA tokens. In their post, Cyvers stated: “Our system has detected a suspicious transaction involving your proxy contract. An address took ownership of your proxy contract and upgraded it. Shortly after, the address used the withdraw admin function to transfer all the $NXRA tokens.”
Nexera paused its token contract and advised investors to stop trading NXRA to prevent further losses. This precautionary measure aims to mitigate the impact of the exploit and protect remaining assets.
Source: X
Despite the $1.5 million loss being small compared to other DeFi hacks, the timing is noteworthy. It follows a $9.8 million ETH breach on the Ronin Network. Interestingly, the Ronin incident involved a suspected white hat hacker who returned all the stolen funds within hours. In stark contrast, the Nexera hacker has shown clear malicious intent, making off with the stolen assets and beginning the process of liquidating them.
Cyvers reported that the attacker has started converting the stolen NXRA tokens into Ether (ETH), a common tactic used by hackers to launder stolen funds. “The address is currently selling all the tokens for $ETH, and some of the funds have already been bridged to the $BNB chain. The total estimated loss is around $1.5 million,” Cyvers noted.
Source: X
By converting to ETH and potentially using cryptocurrency mixers like Tornado Cash, the hacker aims to obscure the origins of the stolen funds, complicating efforts by cybersecurity firms to trace and recover the assets.
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