The CEO of decentralized finance (DeFi) insurer Nexus Mutual named Hugh Karp has lost more than $8 million worth of NXM in a targeted attack.
As per data from etherscan.io, a total of 370,000 of the project’s native NXM tokens were drained from Karp’s address to one owned by the attacker at 09:40 am UTC. Moreover, the transaction costs 0.00429472 ETH, or $2.49.
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
In addition, the hacker is also a member of Nexus Mutual. More so, the hacker has completed the Know-Your-Customer (KYC) 11 days ago. Also, he switched to a new address on December 3. Further, before getting remote access to Karp’s computer and modified MetaMask wallet extension.
Furthermore, this made him sign into a different transaction that transferred the assets from his hardware wallet to the hacker’s address. Added to this, it is found only the Karp’s address was compromised.
Nexus Mutual mentioned in a Tweet,
[blockquote footer=””]The mutual is not impacted; the pool of funds and all systems are safe. [/blockquote]
Some of the stolen funds have been sent through a decentralized exchange aggregator 1inch.exchange. Since news of the attack broke, the price of wrapped NXM tokens declined.
According to CoinGecko, the NXM price is at $22.42 with a 24-hour trading volume of over $27,512, at the time of writing.
Moreover, Nexus Mutual is a community-owned insurance alternative, offering protection from different risks in the DeFi ecosystem. However, only the members can participate in the network, buy, and hold NXM tokens.