Nexera Burns 32.5M NXRA Tokens After $1.5M Hack

Decentralized finance protocol Nexera has taken proactive measures to stabilize its ecosystem by burning stolen NXRA tokens. Data from blockchain security firm PeckShieldAlert shows that Nexera has permanently removed 32.5 million NXRA tokens from circulation.

The burn follows an exploit on August 7, first detected by forensic firm Cyvers, which identified a suspicious transaction from Nexera’s proxy contract. Initial findings indicated that the attacker had upgraded the contract with new permissions and used the withdraw admin function to steal $1.5 million worth of NXRA tokens.

In an attempt to launder the stolen funds, the hacker swapped NXRA for ETH, using cryptocurrency mixers like Tornado Cash. However, Nexera managed to freeze 32.5 million NXRA tokens, limiting the attacker’s haul to $440,000 worth of NXRA tokens.

The exploit was part of a wider coordinated attack targeting multiple projects and protocols.

The Nexera team has assured its community that its smart contracts were not compromised and will retain the current token address. A complete report of the incident is expected “in the coming days.”

Community members are advised to refrain from trading NXRA tokens for now, as exchanges like KuCoin and MEXC have halted trading and withdrawals. The hacker had reportedly interacted with exploit-related addresses on these platforms.

This incident marks the second time Nexera has been targeted. Previously known as AllianceBlock, the project lost 110 million of its legacy ALBT tokens after a hacker exploited the Bonq decentralized borrowing protocol.

The day before this exploit, a white hat hacker exploited Axie Infinity’s Ronin Bridge for 4,000 ETH, worth almost $10 million, but returned the funds a day later after exploiting a Maximum Extractable Value bug.

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