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Nexus Mutual founder prone to hack worth $8M

Nexus Mutual founder prone to hack worth $8M

Nexus Mutual’s founder, Hugh Karp, was exposed to a personal wallet hack draining $8 million. Reportedly, an unknown attacker hacked into the hardware wallet owned by Hug Karp. Nexus Mutual is a decentralized insurance coverage solution that offers a variety of products to its customers. However, it’s uncertain that the innovative insurance platform founder failed to insure himself from subsequent hacks.

Nexus Mutual disclosed the details relating to the wallet hack that occurred on Monday morning in an official tweet. Diving deep, the attacker possibly belongs to the company. In an attempt to drain funds, the attacker gained remote access to Hugh’s hardware wallet. Installing the compromised MetaMask’s extension thereafter, the attacker tricked Hugh into approving a faulty transaction leading to the transfer of funds to the attacker’s controlled address. However, the company reiterated that only Hugh’s address was a target of the hack. Nevertheless, the company funds or any members were beyond the purview of subsequent risk.

Twitterati raises questions on who will insure the Nexus Mutual.

The insurance solution figured out that the attacker completed his know your customer process just 10 days ago per the initial investigation. The Nexus’ founder’s personal wallet attack seems like a well-executed plan as the new address completed its KYC requirements on December 3rd. The company is deeply investigating the matter; however, there is no confirmation on the attacker’s identification yet.

The attack amounts to swiping away 3,70,000 NXM tokens worth $8.2 million at this publication time. The attacker has already put the loot amount to use by actively converting the NXM tokens to ETH. The loot amounts to approximately 6% of the total Nexus Mutual tokens into circulation. This might put downward pressure on the price of the token due to a substantial token dump. Moreover, the NXM token dipped down by about 17% on the hack’s revelation, although the protocol was not exposed to the hack.

The attack gained the widespread community attention wherein a user with a Twitter handle @rodrigopacini replied saying,

Sir… Who will insure the insurance?

Another user @ptzdamian replied in the tweet section by saying,

$COVER … They’ll add nexus to their list “later this week”

Karp complimented the attacker for a well-planned trick for executing the attack. However, he sarcastically mentioned on how the attacker might face challenges in cashing out NXM tokens. Furthermore, Karp tried to woo the attacker by offering a bounty grant worth $300k. Also, the founder promised to cease all investigations concerning the attack thereafter. In another tweet, Karp informed about holding a substantial amount of NXM tokens in spite of the attack.

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