Nemo Protocol Launches Plan to Pay Back Users After Big Hack
Nemo Protocol plans to repay users after a $2.4M hack with NEOM tokens. New code audited to boost safety and regain trust in DeFi space.
Quick Take
Summary is AI generated, newsroom reviewed.
Nemo Protocol lost $2.4 million in a recent hack on the Sui blockchain.
Nemo Protocol plans to repay users using a new NEOM debt token.
Each lost $1 equals 1 NEOM token, which can be exchanged for real money later.
A security firm, Asymptotic, is now auditing the updated code.
A famous project on SUI is Nemo protocol. There was a recent hack in this project which is now a big news today. The hacker stole around 2.4 million USD. They exchanged the embezzled money between Arbitrum and Ethereum both through Circle CCTP bridge. This was a massive disappointment to the project and the users. The Nemo Protocol does not have that plan anymore. They would want to compensate people regarding the money lost. Their task is not so complex to restore damage and to win back trust.
How the Hack Happened
The hack was done within the period between September 7 or 8, 2025. The bug that existed in the code of Nemo was the mitigating factor in this attack. This bug was to help in reducing slippage. But the hacker did exploit it to have command of the system and steal money. Nemo also admitted that the code was not audited before its implementation. The process of the attacker finding a weak point was made easier by that. This was a pointer that many people lost trust and cancelled their investments.
What Is the NEOM Token Plan?
In order to compensate the users affected, Nemo Protocol issued a new token of debt NEOM. The idea is simple. Whenever users lose, they will earn 1 NEOM token. Nemo will expect to get cash money in the long-term or pay-off with profits. They also eliminated the unsafe flash loan aspect. An audit of a security company known as Asymptotic is on the new code.
The conflicting feeling was that of crypto community. Nemo is doing the right thing by the opinion of some users. To them, it is the teamwork. Other people were concerned with the problems of the future. This implies that the excess NEOMs within the market shall be depreciating in value. Nevertheless, the hope of people is high. Some of its users already trust the plan of Nemo. They believe that this will assist the protocol to revive.The individuals in the social media even shared posts such as the HODL to show that they supported it. This is, they would prefer to keep their tokens then.
References
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