Highlights:
- Nexera suffered a significant hack, with $440K in NXRA tokens stolen.
- The hack involved a breach of Nexera’s proxy contract, allowing the hacker to withdraw funds.
- Nexera has paused trading and initiated an investigation to recover the stolen funds.
Nexera, a leading decentralized finance platform, was the target of a major hack on August 7, 2024. This breach led to the loss of approximately 47 million NXRA tokens, initially estimated to be worth $1.5 million.
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However, the company’s internal investigation confirmed that $440,000 was effectively compromised. The Nexera team responded swiftly by pausing NXRA token contracts and halting trading on decentralized exchanges. The blockchain security firm Cyvers Alert first detected the security breach.
In a post on X, CyversAlert stated:
Our system 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.
This led to a massive transfer of NXRA tokens, subsequently converted into Ethereum and USDT.
🚨ALERT🚨Hey @Nexera_Official,
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.The… pic.twitter.com/Of4bAD7UiP
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) August 7, 2024
What Led to Nexera Crypto Hack
The attack unfolded when an unknown entity exploited Nexera’s proxy contract. This hacker upgraded the contract and executed a withdrawal function. Consequently, 47 million NXRA tokens were transferred to the hacker’s wallet. The tokens were quickly converted into Ethereum, with some transferred to the Binance Smart Chain (BNB Chain). Additionally, PeckShield Alert reported that 14.7 million NXRA tokens were converted into USDT, adding complexity to the tracking and recovery process.
#PeckShieldAlert @Nexera_Official has been drained of 47M $NXRA (worth ~$1.76M). The hacker has already swapped 14.7M $NXRA for ~450K $USDT pic.twitter.com/uOZPEjQfnK
— PeckShieldAlert (@PeckShieldAlert) August 7, 2024
The method used in this attack is not new in the crypto world. This type of cross-chain token movement complicates the efforts of tracking stolen assets. Similar hacks have been observed this year and are becoming increasingly common. Moreover, the hacker’s use of multiple blockchain networks adds a layer of complexity to the situation.
Nexera’s Response to Hack
In response to the breach, Nexera paused the NXRA token contract and halted trading activities. This move was coordinated with centralized exchanges to prevent further losses. Nexera stated on X, “The exploit was part of a wider coordinated attack targeting multiple projects and protocols.” The company further clarified that only $440,000 worth of NXRA tokens was compromised.
Update 2
We recently concluded our technical investigation into the exploit and have determined that there is no issue with our smart contracts.
As mentioned in the previous update, we have already acted on freezing the $NXRA assets remaining in the attacker’s wallet and…
— Nexera (@Nexera_Official) August 7, 2024
Nexera’s swift action included freezing the NXRA assets in the attacker’s wallet, preventing any further transactions. The company actively communicated with law enforcement and legal teams to identify the culprits. Following the hack, trading on platforms like Kucoin and MEXC was suspended to contain the situation.
The incident has sent shockwaves through the crypto community, highlighting vulnerabilities in blockchain security. For Nexera, the hack poses significant challenges. The price of NXRA tokens plummeted by 40% following the breach, impacting investor confidence and market stability.
This attack is among the growing list of high-profile crypto hacks in recent months. In July alone, the crypto sector saw approximately $266 million in losses across 16 breaches. A notable incident involved the Indian crypto exchange WazirX, which lost over $230 million. Other victims included Compound Finance, which suffered a $24 million loss.
Despite the losses, Nexera is taking steps to ensure the security of its platform and user funds. The company has assured stakeholders that it is working diligently to recover the stolen assets and prevent future breaches. Nexera is also preparing a comprehensive post-mortem report to provide insights into the attack and outline measures for strengthening security.
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