Hacker Steals $8 Million From Nexus Founder Hugh Karp

The personal address of Hugh Karp, the founder of the Ethereum-based insurance provider Nexus Mutual, has been depleted for over $8 million worth of the NXM token. This dubious act was perpetrated by an already registered client. Notwithstanding the assault, Nexus Mutual has disclosed that all its clients’ assets are protected. 

Nexus further confirmed the announcement on Twitter. 

At 9:40am this morning @HughKarp's personal address was attacked and drained by a member of the mutual. Only Hugh’s address was affected in this targeted attack and there is no subsequent risk to Nexus Mutual or any members.https://t.co/72nrIDpKW6

— Nexus Mutual (@NexusMutual) December 14, 2020

 

The undisclosed hacker completed a Know-Your-Client (KYC) procedure 11 days prior on the platform and afterwards changed membership to another address on December 3. 

He focused on Karp’s wallet. The hacker then supposedly got local access to Karp’s PC and changed the extension of the crypto wallet.

In this way, the culprit figured out how to deceive Karp into making an alternate exchange which moved assets to the hacker’s address.

The trade shows that the hacker has taken 370,000 NXM tokens. The token traded for $22 at that point, this sizeable sum amounts to over $8 million.

Notably, the NXM token has plunged in an in price since the hack by almost 20%. This plunge has further affected NXM’s position in the top 100 tokens.

Funds are SAFU 

The identity and details of the hacker is still unknown. However, there is a bounty placed on the individual.

Nexus Mutual explained that the assault was carried out only on Karp’s account. Therefore, the pool of assets and all task frameworks were protected. 

Karp additionally offered his view on the circumstance on Twitter. He explained it as a “very nice trick, definitely next-level stuff.”

To the attacker. Very nice trick, definitely next level stuff.

You'll have trouble cashing out that much NXM.

If you return the NXM in full, we will drop all investigations and I will grant you a $300k bounty.

— Hugh Karp 🐢 (@HughKarp) December 14, 2020

He cautioned the hacker that he would have issues with cashing that large volume of NXM.

He then offered him a pact if the culprit restores all resources.

He said, “we will drop all investigations, and I will grant you a $300k bounty.”