One of the biggest news by far this week is that of Nexus Mutual decentralized shared platform founder Hugh Karp, who is being hacked into NXM for $ 8 million.
What happened is that an unknown attacker gained access to the Karp device through malware that modified the device’s MetaMask file. This allowed MetaMask to send a fake transaction even though Karp was using a hardware wallet. The bogus transaction stripped $ 8 million of NXM from Karp’s address.
NXM is Nexus Mutual’s native token. What makes NXM extremely interesting is that your Ethereum address has to be KYCed in order to trade it.
It is a little complicated why this is the case, but many thought that it basically means that the hacker’s identity can be determined by looking at Nexus Mutual files.
But it seems that the hacker is not affected.
Hacker asks about Ethereum after stealing an ERC token worth $ 8 million
The attacker recently requested nearly $ 3 million worth of Ethereum from the Nexus Mutual team or Hugh Karp to prevent him from selling Wrapped NXM in the market.
In an embedded message discovered by the Ethereum transaction bot EtherText, the attacker wrote:
“Hello Hugh. I will not sell wNXM anymore until wNXM regains its value or you send me 4.5k ETH. If you need to negotiate with me, send a message to my eth address. You will find your addresses below. You are rich.”
The attacker appears to be suggesting that Karp pay him a bounty of 4,500 Ethereum, or just under $ 3 million in cryptocurrency, to prevent him from launching the wNXM in a way that could affect Nexus Mutual’s trajectory.
One problem is that the attacker who is launching $ 8 million worth of wNXM would likely send the coin towards $ 0 temporarily.
The problem is that Uniswap is the only platform that the attacker can use without being blocked by exchange. Since WNXM has little liquidity compared to centralized exchanges, dumping only a portion of the hacked funds could cause the coin to collapse quickly.
“Hi Hugh. I won’t sell wNXM anymore until wNXM gets its value back or you send me 4.5k ETH. If you need to negotiate with me, send a message to my eth address. Below are your addresses. You are rich, Hugh. 0x87B2a7559d85f4 … “
– 0x07840..482https: //t.co/PwH8yIk7aL
– EtherText (@EtherText) December 16, 2020
The attacker appears to be ready to negotiate.
However, Nexus Mutual and law enforcement agencies may be approaching the attacker.
The following tweet was shared by the Nexus Mutual team yesterday. This came after Karp indicated that he has the attacker’s IP and has some information about the KYC documents that the attacker’s addresses had to submit in order to wrap NXM into WNXM.
We are liaising with law enforcement and will team up with the other related cases that we have found that are also under investigation.
Thank you to everyone who collaborated on the investigation.
As always, we are focused on shipping and building Nexus for the future.
– Nexus Mutual @ (@NexusMutual) December 15, 2020
WNXM is down five percent in the past 24 hours despite the rest of the crypto market rallying sharply.
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