Nexera burned 32.5 million stolen NXRA tokens to enhance security after a recent hack, permanently removing them from circulation.
As part of its efforts to resolve the incident and improve security, Nexera, a decentralized finance (DeFi) protocol, has burned 32.5 million NXRA tokens that were involved in a recent hack.
These 32.5 million NXRA tokens have been irrevocably removed from circulation, as indicated by an X post by blockchain security firm PeckShieldAlert.
Nexera Freezes and Burns Stolen NXRA Tokens After Security Breach
Nexera’s official X account disclosed numerous measures implemented to mitigate the breach in a subsequent response. They concluded their technical investigation and determined that their smart contracts were not compromised.
However, the Nexera team promptly froze the remaining 32.5 million NXRA tokens in the attacker’s wallet to mitigate the harm caused by the exploit.
They determined that only $440K of the total NXRA tokens transferred were effectively compromised. An crucial action was taken to support the stability of the Nexera ecosystem by burning 32.5 million NXRA tokens.
To prevent the stolen and frozen tokens from being used, transferred, or circulated within the market, this action was taken. Nexera sought to alleviate any potential market impact by burning these tokens.
The Nexera Hack
On August 7, Nexera was the victim of a smart contract security incident that resulted in the seizure of $1.5 million in digital assets, including Nexera (NXRA) tokens. A coordinated attack that impacted numerous projects and protocols targeted the protocol, which is designed to connect DeFi with traditional finance.
The hacker seized 47 million NXRA tokens, which are estimated to be worth $1.76 million, and subsequently began trading a portion of them for Ether (ETH). Additionally, they transferred a portion of their funds to the BNB Chain. The total estimated loss was approximately $1.5 million.
The exploit was a component of a more extensive, coordinated attack that targeted numerous projects and protocols, as indicated by Nexera’s updates. The protocol stated that there was no requirement to generate a new NXRA token; the current token address would remain unchanged.
It was strongly recommended that users refrain from engaging in commerce. Due to the fact that the perpetrator had previously interacted with exploit-related addresses on KuCoin and MEXC, these exchanges had suspended their services, which included trading, deposits, and withdrawals. Additionally, additional exchanges were informed and encouraged to implement comparable measures.
This incident is the second-largest crypto hack of 2024, following a similar intrusion at WazirX, an Indian cryptocurrency exchange, which resulted in a loss of over $230 million to a hacker just three weeks prior.
