Crypto News Today: Nomad Bridge Hack Leads to Major Ethereum Price Crash!
The post Crypto News Today: Nomad Bridge Hack Leads to Major Ethereum Price Crash! appeared first on Coinpedia Fintech News
Hackers who attacked the Nomad Bridge found themselves in a winning position as they so answerably bought Ethereum ($ETH) at the lowest price on the market. This large movement was seen as the exploiters invested 39. 75 million $DAI to purchase 16,892 $ETH, which they further sent to Tornado Cash, a cryptocurrency mixer as reported by lookonchain.
The Nomad Bridge Exploit
A digital asset bridge, Nomad Bridge that enables cross-chain transactions for assets was attacked in August, 2022 to the tune of nearly $200 million. The exploit was as a result of a weakness within the bridge’s smart contract designated for allowing unauthorized fund withdrawals.
This weakness enabled the hackers to evade the various checks and authentication which should have prevented them from accessing the crypto and withdrawing it. This was done by the hackers to introduce transactions that would have been vetoed by the contract and instead, they passed through the bridge.
Nearly two hours ago they pumped dollars into Ethereum making a 39. 75 million $DAI to buy 16,892 $ETH. This was done after experiencing a massive dip in the market price meaning that the hackers were able to purchase Ethereum at a cheaper price. The Ethereum purchased was then mixed with Tornado Cash services used to anonymise the source and the destination of cryptocurrencies.
The latest activity of the hackers was followed by several responses from the members of the crypto world. Some consider it as a wise decision in the financial strategy, while some raise concerns in the perspective of more vices. The process of using Tornado Cash complicates tracing the final recipient since the transactions are more anonymous. Though the tornado was sanctioned by the U.S., it still is used widely by bad actors to hide their crypto trails.
Also Read: Weekly Crypto Hack Report: From Convergence Finance to Terra’s $5M Loss