Decentralized finance (DeFi) protocol Nexera recently incinerated 32.5 million NXRA tokens following a hacking incident, as part of their strategy to enhance security. Blockchain security firm PeckShieldAlert confirmed that these tokens were permanently removed from circulation.
How Did Nexera Respond?
Nexera’s official X account revealed multiple measures taken to address the hack. Their technical investigation confirmed that smart contracts were uncompromised. Despite this, about $440,000 worth of NXRA tokens were identified as compromised. Consequently, Nexera froze 32.5 million NXRA tokens in the hacker’s wallet to prevent further damage.
By burning these tokens, Nexera aimed to stabilize its ecosystem. The action ensured that the stolen and frozen tokens would not enter the market or be traded, thereby minimizing their effect on the market.
What Happened During the Attack?
On August 7, Nexera experienced a security breach that led to the theft of $1.5 million in crypto assets, including NXRA tokens. The attack was part of a coordinated assault impacting several projects and protocols.
The hacker stole around 47 million NXRA tokens worth $1.76 million, selling some for Ethereum (ETH) and transferring others to the BNB Chain. Nexera reported an estimated total loss of $1.5 million. The protocol clarified that there was no need to issue a new NXRA token, as the existing token address remains unchanged.
Users were urged to avoid trading NXRA tokens. Exchanges such as KuCoin and MEXC suspended their services after the attacker interacted with addresses linked to the hack. Other exchanges were also notified to take similar precautions.
Concrete Measures and Recommendations
Key measures and recommendations from the incident include:
- Freezing compromised tokens immediately to prevent further market impact.
- Conducting thorough technical investigations to ensure the integrity of smart contracts.
- Coordinating with major exchanges to suspend related services promptly.
- Advising users against trading during the investigation period.
This security breach occurred weeks after a similar incident at the Indian cryptocurrency exchange WazirX, where over $230 million was stolen, marking the second-largest crypto attack of 2024.