Wallet Of Nexus Mutual Project Cofounder Hacked; NXM Rate Drop By 20%
December 14, 2020 / Business
About 370 thousand NXM were stolen from Hugh Karp’s crypto wallet. This figure is equivalent to 6% of the total number of tokens in circulation.
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 fraudster hacked the wallet of Nexus Mutual cryptocurrency insurance project founder, Hugh Karp, and withdrew 370 thousand NXM token. The current cost of stolen tokens is estimated at $ 6.5 million. The value of NXM practically fell by 20% when the project reported about the hack.
According to Nexus Mutual, one of the platform users is behind the hack. The cryptocurrency withdrawn from Karp’s wallet is equivalent to 6% of the NXM tokens in circulation.
The project team stated that the attack was targeted at the cofounder, therefore, the wallets of other users are safe. A hacker gained access to Karp’s computer and modified the MetaMask extension so that the latter signed the wrong transaction while sending funds. As a result, the tokens were sent to the criminal’s address.
The hacker is already laundering the stolen funds on the 1inch decentralized exchange. Karp noted that the criminal should have problems with the withdrawal of this amount of cryptocurrency. The founder of the project promised to abandon the investigation of the incident and pay the hacker $ 300 thousand if he returns the stolen money to him.
After the publication of the report about the hack, the value of NXM fell by 19.4%. Since the morning, the token was trading at $ 22 – at the time of press time, its cost drop to $ 18.25.