Hacker Steals $8 Million From The Personal Wallet Of Nexus Mutual CEO
Hacker Steals $8 Million From The Personal Wallet Of Nexus Mutual CEO
December 15, 2020
Hacker Steals $8 Million From The Personal Wallet Of Nexus Mutual CEO
Hacker Steals $8 Million From The Personal Wallet Of Nexus Mutual CEO
December 15, 2020

Hugh Karp, the CEO of DeFi coverage platform Nexus Mutual, got hacked by an unknown hacker who stole $8 million from his personal wallet.

It has been reported by disclosure by Nexus Mutual that the funds were drained on Monday (December 14) morning UTC by compromising Karp’s personal device, as the hacker managed to install a compromised version of MetaMask that tricked Karp into signing a transaction that redirected all his NXM tokens to an attacker-controlled address.

However, the loot amounts to 370,000 NXM, worth $8.2 million. The hacker already began converting the tokens to Ether (ETH), with a total balance of 354 ETH worth more than $200,000.

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The report said that according to Nexus Mutual, Karp was using a hardware wallet. The attacker circumvented the protection by replacing a legitimate transaction with his own. Some hardware wallets should provide protection against these types of attacks by requiring confirmation on the device itself, where the display should be protected against this form of tampering.

Also, the attacker was a member of the mutual, having passed know-your-client verification 12 days ago.

It has been analyzed that the attacker was not fully identified though, with investigations still pending, as the attacker needed to be a verified member of the mutual in order to receive NXM tokens.

A Nexus Mutual community manager said that they are “working on the assumption that [the hacker] could have committed identity fraud.”

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Likewise, the NXM token dropped 17% since the attack occurred, although the protocol itself was not affected.

The NXM stolen in the hack amounts to approximately 6% of all tokens in circulation, which could pose significant downward pressure on price.

As per the report, Karp later complemented the attacker for performing a “very nice trick.”

Thus, he offered a $300,000 bounty and dropping all charges in exchange for returning the tokens by arguing that the hacker would have trouble in converting the NXM into more liquid forms of money.

Source: Cointelegraph


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.