Cardano Users Indirectly Impacted by Nomad Hack: Details

Cardano

Hack could be described as one of DeFi’s most chaotic attacks to date

Nomad’s cross-chain bridge has been hacked, as reported Colin Wu, who shared a tweet provided by the official Nomad account regarding the incident. According to Paradigm researcher “Samzson”, the hack can be described as one of the most chaotic attacks on DeFi to date.

Peckshield indicates that 41 addresses grabbed nearly $152 million, or nearly 80% of the Nomad bridge exploit, although the total amount lost has not yet been confirmed. However, it is estimated that millions worth of wrapped Bitcoin (WBTC), wrapped Ethereum (WETH), USD Coin (USDC) and other assets were stolen.

according to a twitter user“The Paradigm Engineering bridge allows the user to pass in an arbitrary amount when they withdraw that does not necessarily correspond to the amount they deposited in Nomad on the second chain, thus exploiting the advantage.”

Reports indicated that Nomad had a total value locked (TVL) of $165 million, per DefiLlama data, at the time of the exploit.

Cardano Users Indirectly Affected

According to the Cardano-focused Twitter account, ada whaleCardano users may have been indirectly affected by the hack.

Milkomeda C1 launched in late March, enabling Ethereum dApps to be deployed in the Cardano ecosystem. The cross-chain protocol, Nomad, is one of the dApps functioning on Milkomeda C1.

Prior to the deployment, Nomad announced in February that its Ethereum bridge would be connected to Milkomeda, meaning that, in fact, assets could be sent back and forth between Cardano and Ethereum.

Milkomeda spoke on the incident afterward: “We are aware of the Nomad exploit. Unfortunately, we can’t control what happens to other projects. This does not affect the base Milkomeda protocol, but Nomad is one of the multiple bridges deployed to Milkomeda, so users of Nomad-based assets on Milkomeda & Cardano are affected.”

Milkomeda is a Layer 2 protocol (rollup) that provides EVM capabilities to non-EVM blockchains.

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