Blockchain interoperability protocol Nomad has announced plans to relaunch its token bridge after it suffered a crippling hack earlier in the year. According to the announcement made on its official medium, the bridge also intends to introduce a partial refund for users affected by the exploit.
After upgrading its smart contract to rectify issues that resulted in its vulnerability, Nomad issued a guide for its planned relaunch months after it halted operations due to the hack. As part of the guide, Nomad has requested that affected users complete a verification process via CoinList, a centralized exchange, and a launchpad platform to claim their reimbursements.
Upon completion of the Know Your Customer (KYC) process which is currently ongoing, users are then rewarded with a customized non-fungible token (NFT). With these NFTs, users can access a proportional share of the recovered funds. They will also be eligible for additional funds recovered in the future.
Nomad loses $190 million worth of digital assets to hackers
Unlike many other crypto heists which required technical procedures, criminal groups exploited a faulty software update from the Nomad developers to deploy a simple “copy and paste” instruction that drained funds from the Nomad network back in August.
In an attempt to preserve some of the network’s funds from the criminals, whitehat hackers who noticed the suspicious activities joined in the frenzy.
In what is described as one the most chaotic hack in the web 3.0 space, a total of $190,000 worth of digital assets was reportedly drained from the platform. After a reward-backed plea, whitehat hackers returned $32.6 million in cryptocurrencies.
Meanwhile, Nomad secured $22 million in a seed round led by Polychain Capital earlier in April. It attained a $225 million valuation after this round and intended to use the funds to grow its team, increase awareness of Nomad, and bring security-first interoperability to more ecosystems.
Due to the increased emergence of several innovative protocols which are all resident on different blockchains, cross-chain interactions have now become a necessity to access the benefits present in any one particular protocol. Bridges are oftentimes required to facilitate these interactions.