Cross-chain bridge Nomad has announced that it is preparing to relaunch its bridge and offer partial refunds to users affected by the hack.
Nomad suffered a crippling hack in August when malicious actors discovered and exploited a loophole in Nomad’s smart contracts.
Restart and refund
The Nomad cross-chain bridge has announced that it is preparing to relaunch its bridge and refund users who lost money during the $190 million exploit that took place earlier this year. The Nomad team announced the launch of its relaunch guide after it patched the smart contract vulnerability that hackers exploited to orchestrate the August hack. In a post on Medium, the team stated:
“Since the Nomad Token Bridge hack, the team has been working hard to recover funds and make the necessary updates to safely restart the Nomad Token Bridge.”
According to Nomad, the protocol would allow users to bridge their madAssets and access a prorated share of recovered funds. The company also implemented a redesign for the token bridge, without which, according to the company, the “first people to bridge their madAssets would receive canonical tokens on a one-to-one basis until no canonical tokens were left.”
In an effort to avoid this first-come, first-served approach, Nomad has made several changes to the protocol, giving users the ability to bridge, access some of the restored money and ensure that the tokens being accessed are in the original token. , providing affected users with a mechanism to access amounts recovered in the future. Nomad added,
“Given the scope of these changes, a full audit of the smart contracts has been completed, along with an additional review of any remedial actions with our auditors.”
Verification process opened
Nomad also asked its users to review and comply with all Know Your Customer (KYC) regulations through CoinList, a centralized exchange and launchpad, to receive their refunded funds. The team stated that KYC was essential to ensure all payments were in line with compliance standards.
Once the verification process is complete, users receive a special NFT that grants them access to a proportional share of the funds recovered on the Ethereum blockchain. The NFTs will be non-transferable and will allow holders to receive other funds to be recovered in the future.
The Nomad Bridge Hack
Nomad’s cross-chain bridge allows users to move assets across Ethereum, Avalanche, Moonbeam, and Evmos blockchains. In August, attackers discovered a security flaw in Nomad’s smart contracts that allowed them to steal money through dubious transactions. An analysis of the hack revealed that the original hackers were joined by hundreds of copycat hackers, who exploited the same vulnerability but modified the recipient address, token amount, and target tokens.
The hack was the result of a faulty software update initiated by the Nomad developers, which allowed anyone to take money off the protocol. The hack stole $190 million from Nomad, making it one of the biggest crypto hacks of 2022. Nomad had managed to recover nearly $37 million of the stolen funds with the help of ethical hackers, while still asking hackers to return the stolen tokens.
Disclaimer: This article is for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.