Nemo Protocol Exploited for $2.4 Million in Stablecoins

Sui-based DeFi platform Nemo Protocol has fallen victim to a security exploit that resulted in the loss of $2.4 million in stablecoins. The breach, which affected the project’s Market pool, was first flagged by blockchain security firm PeckShield. According to the firm, the attacker quickly moved the stolen USDC, bridging it from Arbitrum to Ethereum.

Nemo Confirms the Breach

Nemo acknowledged the exploit early Monday morning at 3:27 a.m. ET in a message to its community on Telegram. The team noted that it had already scheduled maintenance for its Nemo App on Monday and Tuesday, but confirmed that all smart contract activity has now been suspended as a precautionary measure.

“Dear Nemo Community, a security incident occurred last night, impacting the Market pool,” the announcement read. “We are investigating the matter and have suspended all smart contract activity for the time being. We plan to share when more information becomes available.”

Vault Assets Reported as Secure

While the platform has not yet disclosed the technical root cause of the exploit, Nemo emphasized that vault assets remain secure. The Block has reached out to the team for additional details and updates regarding the incident.

Background on Nemo Protocol

Nemo Protocol is a DeFi yield infrastructure project built on the Sui blockchain. The platform specializes in yield tokenization, allowing users to trade, hedge, and leverage yields in a more flexible and efficient manner. Its native yield-trading model has positioned it as an emerging player in the Sui ecosystem, though the recent exploit underscores the ongoing risks facing decentralized finance platforms.