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Cardano Users Claims To Be Indirectly Affected By Nomad’s Exploit

Cardano users were indirectly affected by the phishing attack on the Nomad Bridge protocol. One of the bridges for the Cardano ecosystem On Monday, August 2nd, a...
Cardano Users Claims To Be Indirectly Affected By Nomad’s Exploit Cardano Users Claims To Be Indirectly Affected By Nomad’s Exploit

Cardano users were indirectly affected by the phishing attack on the Nomad Bridge protocol.

One of the bridges for the Cardano ecosystem

On Monday, August 2nd, a cross-chain protocol Nomad Bridge fell prey to a phishing scam and lost nearly all of its $200 million in cryptocurrency.

Monday’s attack on Nomad indirectly affected Cardano users as the Nomad protocol was one of the multiple bridges deployed to Milkomeda C1, Milkomeda said. C1, Cardano sidechain.

Milkomeda C1 is a layer 2 protocol that allows Ethereum decentralized apps (dApps) to be deployed in the Cardano ecosystem.

"This does not affect the base Milkomeda protocol, but Nomad is one of multiple bridges deployed to Milkomeda so users of Nomad-based assets on Milkomeda & Cardano are affected," following the discovery of the exploit on Tuesday, Milkomeda tweeted on its official Twitter (NYSE:TWTR) account. In March of this year, Milkomeda released a Cardano sidechain C1, Cardano sidechain, that allowed users to transfer assets between Cardano and Ethereum.

An ordinary software upgrade on one of Nomad’s smart contracts led to the attack, which enabled users to forge transactions and drain the bridge, tweeted a researcher at crypto and web3 investment firm, Paradigm.

Early on Wednesday morning, Asia time, Nomad tweeted to its community that it is setting up a recovery address for white hats to transfer recovered funds, working with law enforcement to find and recover the stolen assets, and creating an action plan to fix the technical issue.

Cardano community reacts

Cardano-focused Twitter account ‘ADA Whale’ said many Cardano users are indirectly affected by the attack on Nomad.

This is not the first time ADA Whale has voiced concerns about having cross-chain bridges connected to Milkomeda.

Why You Should Care

Cardano reached a market cap of $77 billion in May 2021 and solidified its position as the biggest proof-of-stake cryptocurrency.

Read more about phishing attacks:

$190M Drained As Nomad Bridge Falls To Phishing Exploit

Cardano Among Top Targets of Phishing Attacks Ahead of Vasil Fork

Continue reading on DailyCoin

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13-08-2022 10:34:24 (UTC+7)

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