What happened?
Nemo Protocol was victim to a $2.6 million exploit due to unaudited code secretly deployed by a rogue developer. In response, Nemo has launched a debt token program, issuing one NEOM token for every dollar lost to compensate affected users and allowing them to migrate their remaining assets to secure multi-audited contracts.
Who does this affect?
The cyber attack primarily affects users of the Nemo Protocol who experienced financial losses as a result of the exploit. These victims will be issued NEOM tokens corresponding to their losses. The incident also draws attention to the broader DeFi platform community, highlighting potential vulnerabilities in security measures.
Why does this matter?
This incident underlines concerns about the security of DeFi platforms, potentially affecting investor confidence and the overall market stability. With Nemo’s total value collapsing from $6.3 million to $1.57 million and over $2.37 billion lost across 121 incidents in 2025, the hack emphasizes the need for robust security measures within crypto platforms.