Crypto Opinions & News Crypto Bridge Bug led to a $200M 'Decentralized Crowd Looting'

[upnorth]

Content source

https://www.theregister.com/2022/08/02/flash_mob_robs_nomad_crypto/

Cryptocurrency bridge service Nomad, which describes itself as "an optimistic interoperability protocol that enables secure cross-chain communication," has been drained of tokens notionally worth $190.7 million if exchanged for US dollars.

"We are working around the clock to address the situation and have notified law enforcement and retained leading firms for blockchain intelligence and forensics," the biz said via Twitter. "Our goal is to identify the accounts involved and to trace and recover the funds." Nomad allows cryptocurrency holders to trade their tokens across different blockchains, the distributed public ledgers used to track crypto assets. Bridge services of this sort represent a known security risk among those who trade tokens. Here's Ethereum co-founder Vitalik Buterin musing on Reddit about the "fundamental security limits of bridges." And here are some recently hacked bridges: Ronin Bridge ($600 million); Qubit Bridge ($80 million); Wormhole Bridge ($320 million); Meter.io Bridge ($4.4 million); and Poly Network Bridge ($610 million that was returned).

How a crypto bridge bug led to a $200m 'crowd looting'

Flash mob exploits Nomad's validation code blunder

www.theregister.com