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Attacks to an Already Unstable Crypto Industry

Several crypto ecosystems have been victim to malicious attacks, the cause being hastily built infrastructure. How do authorities and governments regulate their security for the future? Photo Credit: @Quantitatives

Over $5.2 million in crypto, specifically wallets holding Solana, was breached this week. This follows the infiltration of Nomad, a popular blockchain bridge comprised for $190 million. Interestingly, authorities cannot figure out where these stolen funds went.

The Nomad Hack

An initial hack by hackers on Monday targeted Nomad, which claimed to be the ‘gold standard for crypto. Nomad is a cross-chain bridge, which allows users to exchange one cryptocurrency for another. For example, if you wanted to exchange your US dollar for Ethereum or Solana, Nomad would be the place to go. Still, hundreds of hackers, using code accessible to anyone, breached the project and stole $190 million, with the first transaction totaling $2.3 million. Nomad is currently working with several security firms. And yet, no action has been taken, speaking magnitudes to the state of crypto security in the current market.

Wallet Breaches

Following the attack on Nomad, breaches occurred on more than 7700 wallets for almost $5 million. More popularly hit were Slope and Phantom wallets. Slope and Phantom are digital wallets that house digital currency or tokens, similar to how our wallets hold our cash and cards. The hack has to do with exploiting software within the two programs. Many who own crypto have resorted to transferring their assets to hardware wallets for the time being, or physical ledgers. Similar to the Nomad hack, no action has been taken yet.

Four hackers have attacked over 15000 wallets collectively, with possible overlaps. Many industry experts have shared multiple theories as to what is happening. However, these recent events bring light to the state of blockchains. With the recent boom and spotlight on crypto, the design for many chains is hasty, leading to similar attacks and breaches as mentioned. For example, in March, a breach on Ronin happened for over $600 million in crypto. Ronin is similar to Nomad, both considered as compromised blockchain bridges. This is due to exploits in the blockchains they bridge. As exposure to crypto rises, so do hacks exploiting bad code on hastily built blockchains. This brings light to the security of crypto for the long run. An issue which must be addressed by authorities and officials soon. But when? And how bad will it get before we can stop future hacks?

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