Decentralized finance (DeFi) protocol Nexera has taken decisive action to stabilize its ecosystem after suffering a $440,000 loss in a recent exploit. In response, the protocol has burned 32.5 million NXRA tokens that were compromised during the attack.
The incident, first detected on August 7 by blockchain forensic firm Cyvers, involved an unauthorized transaction from Nexera’s proxy contract. The attacker reportedly upgraded the contract with new permissions and exploited the withdraw admin function to siphon off $1.5 million worth of NXRA tokens. The stolen tokens were then swapped for ETH, with the hacker attempting to launder the funds through cryptocurrency mixers like Tornado Cash—a common tactic in such exploits.
However, Nexera quickly intervened and managed to freeze 32.5 million NXRA tokens, limiting the hacker’s actual gain to $440,000. Blockchain security firm PeckShieldAlert later confirmed that these compromised tokens were permanently removed from circulation.
Despite the attack, Nexera’s smart contracts remained uncompromised, allowing the project to retain its existing token address. The team has pledged to release a comprehensive report on the incident in the coming days and emphasized that this exploit was part of a broader, coordinated attack targeting multiple DeFi projects.
In the aftermath, Nexera advised its community members to refrain from trading NXRA tokens, as major exchanges KuCoin and MEXC have halted trading and withdrawals related to the token. The attacker was found to have interacted with exploit-related addresses on these platforms.
This marks the second significant exploit faced by Nexera, previously known as AllianceBlock. In an earlier incident, the project lost 110 million ALBT tokens due to a hack on the decentralized borrowing protocol Bonq.
Interestingly, the Nexera incident coincided with another exploit on Axie Infinity’s Ronin Bridge, where a white hat hacker drained 4,000 ETH, worth nearly $10 million, exploiting a Maximum Extractable Value bug. The funds were returned a day later, showcasing the ongoing vulnerabilities within the DeFi space.
As Nexera moves forward, the protocol’s swift action to burn the compromised tokens highlights its commitment to maintaining the integrity of its ecosystem and protecting its community.
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