Nexera Burning Stolen 32.5M NXRA Tokens Following Hack

Aug. 09, 2024. 2 mins. read.

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Nexera, a decentralized finance (DeFi) protocol, has taken significant action to address a recent hack by burning 32.5 million of its native NXRA tokens involved in the incident, aiming to enhance security and stabilize the protocol.

According to an X post by blockchain security firm PeckShieldAlert, these 32.5 million NXRA tokens have been permanently removed from circulation. Nexera’s official X account also confirmed the burn, emphasizing that the action was crucial for the ecosystem’s stability.

Reason for the Nexera Burn

Following the breach, Nexera announced several steps to mitigate the damage. Their technical investigation concluded that their smart contracts were not compromised. However, to limit the impact, Nexera froze the remaining 32.5 million NXRA tokens in the attacker’s wallet, determining that only $440,000 of the total NXRA tokens transferred were effectively compromised. The decision to burn the stolen tokens was aimed at preventing their use, trade, or circulation within the market.

The Nexera Hack

On Aug. 7, Nexera experienced a smart contract security incident resulting in the theft of $1.5 million worth of digital assets, including NXRA tokens. The attack targeted multiple projects and protocols, marking a coordinated effort. The hacker stole 47 million NXRA tokens, valued at approximately $1.76 million, and began selling a portion for Ether. Some funds were also transferred to the BNB Chain, with the total estimated loss around $1.5 million.

Nexera reassured users that there was no need to issue a new NXRA token, and the existing token address would remain the same. They strongly advised users to refrain from trading due to the attacker’s activities on KuCoin and MEXC, leading these exchanges to suspend services like deposits, withdrawals, and trading. Other exchanges were also notified to take similar precautions.

Broader Impact

This incident follows a similar breach at WazirX, an Indian cryptocurrency exchange, which lost over $230 million to a hacker three weeks prior, marking the second-largest crypto hack of 2024. The persistent attacks highlight the ongoing challenges in securing DeFi protocols against sophisticated exploits.

By burning the stolen NXRA tokens, Nexera aims to bolster the protocol’s long-term stability and integrity, demonstrating a proactive approach to security in the evolving DeFi landscape.