Another Altcoin Hack Attack News: Here's the Price Reaction and What Happened!
Nexerafaced a major crypto hack. The hack resulted in the theft of 47 million NXRA tokens. The incident was detected by blockchain security firm Cyvers Alert. A suspicious transaction was linked to Nexera’s proxy contract. The attackers hijacked and updated Nexera’s proxy contract and transferred NXRA tokens using the withdraw admin function.
Details of the Hack
Attackers quickly moved the stolen tokens, stealing approximately $2.9 million worth of NXRA Ethereum (ETH). Additionally, some funds are bridged to the Binance Smart Chain (BNB Chain) network, making it difficult to track and recover assets. Peck Shield Alert reported that 14.7 million NXRA was converted to USDT.
Nexera's Response and Steps
Nexera has acknowledged the vulnerability and provided a detailed statement to its stakeholders. The company highlighted the measures it has taken to limit damages and prevent future losses. The team took swift action, pausing the NXRA token contract and halting decentralized exchange trading. They are also working with centralized exchanges to halt NXRA trading.
Nexera advised all token holders not to trade immediately. However, since the hack was announced, the altcoin’s price has plunged by 140%, hitting an all-time low of $0.01815, according to CoinMarketCap data.
Effects and Recovery Chances
This crypto hack has once again highlighted the vulnerabilities in the digital asset space. Other platforms like Ronin Network and WazirX have also recently experienced similar security issues. For Nexera, this attack could have long-term implications on investor confidence and the platform’s reputation.
The loss of $2.9 million worth of NXRA tokens could impact the token’s market value and liquidity. The company’s ability to quickly address the breach and recover the stolen funds will be critical to rebuilding trust among users and investors. However, if Ethereum was misappropriated through a covert crypto mixer like Tornado Cash, the funds could be difficult to recover.
Still, considering that the $10 million worth of Ethereum stolen in the Ronin Network incident was fully recovered, Nexera’s chances of recovering funds may be higher thanks to the swift measures taken by the protocol.
