Hacker loots over USD 8 million in NXM – CEO sends 370,000 tokens to the wrong address

An unknown hacker stole NXM tokens worth over USD 8 million today from the personal wallet of High Karp, CEO of DeFi insurance Nexus Mutual. This incident caused the price to drop by 15-20%.

Nexus Mutual CEO falls victim to hackers

According to a release from Nexus Mutual, the funds were withdrawn this morning through the manipulation of Karp’s computer.

The hacker reportedly managed to install a fake version of MetaMask on Karp’s computer. This led Karp astray and signed a transaction with his private key, which the NXM tokens sent directly to the hacker’s wallet.

The loot amounts to 370,000 NXM, which was worth $ 8.2 million at the time of the hack. The hacker has already started converting the tokens into Bitcoin Revolution, with a total balance of 354 ETH worth more than $ 200,000.

Almost half of all tokens are still in his possession. The wallet has already been identified by Etherscan as a “ Nexus Mutual Hacker „.

Attackers duped CEO

According to Nexus Mutual, Karp use a hardware wallet. However, the attacker bypassed the protection by replacing the real transaction with his own.

Some hardware wallets should offer protection against this type of attack by requiring confirmation on the device itself, and the display should be protected against this form of manipulation. It can therefore currently be assumed that the CEO has not sufficiently checked the address.

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The attacker went through a KYC on Nexus Mutual 11 days ago. However, the hacker could not be fully identified as the investigation is still ongoing.

Because the real NXM tokens can only be traded after a successful KYC. Otherwise, WNXM can be used instead. It is therefore assumed that the hacker must also have used a false identity at the KYC.

NXM price drops by up to 20%

The NXM price fell nearly 20% since the attack, although the protocol itself was not affected. Nonetheless, the NXMs that were stolen in the hack make up 6 & of all tokens currently in circulation. So it’s no wonder that the price has plummeted so much.

Karp praised the hacker on Twitter for the „very nice trick“. He offered a $ 300,000 bounty when all of the NXMs are transferred back. He said the hacker would have difficulty laundering the sum.

However, you can currently see that the hacker has already managed to convert almost half of the WNXM into Ethereum. We are curious how the investigation will continue here.