Nomad to restart bridge after $190 million hack in August
Quick Take
- Nomad, a bridge that was exploited for over $190 million dollars, is restarting and offering partial refunds.
- The team has asked users to go through KYC verification to let them bridge back assets to Ethereum.
Cross-chain bridge protocol Nomad is getting set to relaunch and partially reimburse those that lost funds in its $190 million hack earlier this year.
“Since the Nomad Token Bridge hack, the team has been working hard on recovering funds and making the necessary updates to safely relaunch the Nomad Token Bridge,” the team noted, in a Medium post.
Nomad has asked affected users to go through Know Your Customer (KYC) verification via CoinList, a centralized exchange and launchpad platform, to receive their reimbursements. The team at Nomad said the KYC process was essential to ensure the payments were in line with compliance norms.
This verification process is now open. Once it has been completed, users will receive a special non-fungible token (NFT), granting them access to a proportional share of the recovered funds on the Ethereum blockchain. These NFTs will be non-transferable and will allow them to receive any additional funds that are recovered in the future.
On Aug. 1, an estimated 300 crypto users took funds from Nomad's cross-chain bridge, a tool that lets users move tokens across Ethereum, Moonbeam, Evmos and Avalanche blockchains. The incident occurred after a faulty software update from Nomad developers allowed anyone to drain funds from it.
The total funds stolen in the incident amounted to $190 million, making it one of the largest crypto hacks of 2022. Of this amount, ethical hackers saved and returned more than $22 million. The team hopes to reopen the bridge to return these recovered funds after months of halt.
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