Nemo Protocol halts contracts after $2.4M market pool breach
Nemo Protocol, a yield platform on the Sui blockchain, lost approximately $2.4 million in a security exploit. The team suspended smart contract operations while investigating the incident.
Blockchain security monitors detected unusual outflows from Nemo's market pool. The attacker drained USDC tokens and transferred funds across multiple networks. Nemo confirmed the security incident affected its market pool but stated vault assets remained safe.
The hack immediately impacted Nemo's liquidity. The total value locked (TVL) dropped from over $6 million to approximately $1.53 million after the incident.
The hack immediately impacted Nemo's liquidity. The total value locked (TVL) dropped from over $6 million to approximately $1.53 million after the incident.
On-chain analysts confirmed the exploit totaled around $2.4 million in USDC. Security researchers tracked the stolen funds as they moved between networks, including transfers from Arbitrum to Ethereum as part of the laundering process.
The exact cause of the exploit remains unknown. Public information points to the market pool as the affected component. The team has not disclosed whether the exploit involved a logic error, price oracle manipulation, or privilege misconfiguration.
Nemo operates as yield infrastructure on Sui, allowing users to split staked assets into Principal Tokens and Yield Tokens for trading and hedging future yield. The protocol is part of Sui's expanding DeFi ecosystem, which aims to attract liquidity through high-throughput transaction capacity.
Scallop, another lending protocol in the Sui ecosystem, clarified the incident "only affects the Nemo protocol itself" and confirmed its pools remain secure. Nemo advised users to monitor official channels for instructions and avoid unofficial remediation links while smart contracts remain paused.
The exact cause of the exploit remains unknown. Public information points to the market pool as the affected component. The team has not disclosed whether the exploit involved a logic error, price oracle manipulation, or privilege misconfiguration.
Nemo operates as yield infrastructure on Sui, allowing users to split staked assets into Principal Tokens and Yield Tokens for trading and hedging future yield. The protocol is part of Sui's expanding DeFi ecosystem, which aims to attract liquidity through high-throughput transaction capacity.
Scallop, another lending protocol in the Sui ecosystem, clarified the incident "only affects the Nemo protocol itself" and confirmed its pools remain secure. Nemo advised users to monitor official channels for instructions and avoid unofficial remediation links while smart contracts remain paused.
The protocol promised further updates as the investigation progresses. Users were warned against engaging with unauthorized recovery attempts while the team works to understand the full scope of the security breach.
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