The Nomad Bridge exploiter took advantage of the recent Ethereum price drop by purchasing a significant amount of the cryptocurrency during the sell-off, later depositing it into Tornado Cash.
According to data shared by Lookonchain on the social media platform X, the exploiter spent 39.75 million DAI to acquire 16,892 ETH. This strategic purchase was made during a market dip, allowing the hacker to buy Ethereum at a notably low price.
As of Monday, Ethereum, the second-largest cryptocurrency, was trading down 19% at $2,356 within the last 24 hours. Bitcoin also experienced a 10% drop, trading at $54,207 at 3:50 UTC. Some investors are viewing this sell-off as an opportunity to buy cryptocurrencies at a discounted rate.
Earlier today, Jump Crypto, the cryptocurrency division of Jump Trading, also liquidated substantial amounts of Ethereum to centralized exchanges (CEXs) like Binance, OKX, Bybit, Coinbase, and Gate.io. This move highlights the company’s shift in managing its Ethereum assets, potentially indicating a repositioning of its crypto portfolio or anticipating market changes. The movement of large volumes of crypto can lead to extreme price swings.
The Nomad Bridge Exploit of 2022
The Nomad Bridge exploit was a significant event in the crypto world in August 2022. The security breach involved the Nomad Bridge, a cross-chain protocol facilitating asset transfers between different blockchains. Vulnerabilities in the bridge’s code were exploited, leading to the unauthorized withdrawal of over $190 million worth of crypto.
This incident underscored the potential security risks associated with decentralized finance (DeFi) protocols, emphasizing the need for robust security measures. Following the exploit, the Nomad protocol team announced upgrades to fix the vulnerabilities that led to the hack and to allow users to bridge back madAssets and access a pro-rata share of recovered funds.
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