DeFi Protocol Nexera Hacked: $1.5 Million Stolen in Smart Contract Exploit

Nexera, a decentralized finance protocol, has suffered a significant security breach resulting in the loss of $1.5 million worth of NXRA tokens. This incident underscores the ongoing vulnerabilities within the DeFi ecosystem and highlights the need for enhanced security measures.

Nexera’s Response to the Hack

Nexera, which aims to integrate traditional finance with DeFi, found itself in the crosshairs of a hacker who exploited its smart contract. The breach was identified and reported by Cyvers on August 7, with the company stating:

“Our system has detected a suspicious transaction involving your proxy contract. An address took ownership of your proxy contract and upgraded it. Shortly after, the address used the withdraw admin function to transfer all the $NXRA tokens.”

 

In light of the exploit, Nexera has paused its token contract and strongly advises investors to halt trading of NXRA tokens to prevent further losses.

Hacker’s Movements and Fund Laundering Tactics

The malicious actor has already begun liquidating the stolen NXRA tokens, converting them into Ether (ETH). Cyvers reported:

“The address is currently selling all the tokens for $ETH, and some of the funds have already been bridged to the $BNB chain. The total estimated loss is around $1.5 million.”

Hackers often use such tactics to obscure the origin of stolen funds, typically employing cryptocurrency mixers like Tornado Cash to make tracing the funds more challenging for cybersecurity experts.

Connection to Previous Exploits

Onchain investigator ZachXBT has revealed that the hacker involved in the Nexera exploit is linked to other recent security breaches. In an August 7 Telegram post, ZachXBT noted:

“Attacker is connected on-chain to recent private key compromise incidents such as SpaceCatch, Concentric Finance, OKX DEX, Serenity Shield, Reach, and many more.”

Broader Implications and Recent Trends

This breach comes just a day after the Ronin Network faced a $9.8 million exploit, where a suspected white hat hacker returned the stolen funds. Such incidents highlight the ongoing security challenges within the DeFi sector. Additionally, the exploit at Nexera follows closely on the heels of a massive $230 million hack on WazirX, marking the second-largest cryptocurrency theft of 2024.