Nexera Burns 32.5 Million NXRA Tokens After Hack Incident

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The decentralized finance (DeFi) protocol Nexera recently burned 32.5 million NXRA tokens involved in a hack incident as part of efforts to address the event and enhance security. According to a post by blockchain security firm PeckShieldAlert, these 32.5 million NXRA tokens were permanently removed from circulation.

Nexera Team Takes Notable Step

In the second response, Nexera’s official X account announced several steps taken to address the hack. The team completed their technical investigation and determined that their smart contracts were not compromised. However, after concluding that only $440,000 worth of transferred NXRA tokens were effectively compromised, the Nexera team quickly froze the remaining 32.5 million NXRA tokens in the attacker’s wallet to mitigate the damage caused by the attack.

The burning of 32.5 million NXRA tokens was a significant action aimed at supporting the stability of the Nexera ecosystem. This action prevented the stolen and frozen tokens from being used in the market, traded, or circulated. By burning these tokens, Nexera aimed to reduce the potential impact on the market.

What Happened?

On August 7, Nexera was attacked in a smart contract security incident resulting in the theft of $1.5 million worth of crypto assets, including NXRA tokens. The protocol, which aims to combine DeFi with traditional finance, was the target of a coordinated attack affecting multiple projects and protocols.

The hacker stole approximately 47 million NXRA tokens worth $1.76 million and began selling some of them for Ethereum (ETH). They also transferred some funds to the BNB Chain network, with an estimated total loss of around $1.5 million. According to updates provided by Nexera, the attack was part of a broader coordinated attack targeting multiple projects and protocols. The protocol stated that there was no need to issue a new NXRA token; the existing token address would remain the same.

Users were strongly advised to avoid trading. Given that the attacker had previously interacted with addresses related to the attack on KuCoin and MEXC, these exchanges suspended their services, including deposits, withdrawals, and trading. Additional exchanges were also informed and asked to take similar actions.

This incident follows a similar breach at the Indian cryptocurrency exchange WazirX three weeks ago, which resulted in a loss of over $230 million to a hacker and was the second-largest crypto attack of 2024 to date.

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