Nervos Network's Force Bridge Hacked $3 Million Stolen

The cross-chain interoperability solution of the Nervos Network, known as Force Bridge, has reportedly been compromised, resulting in the theft of approximately $3 million in digital assets. The incident was first identified by the on-chain security platform Cyvers Alerts, prompting an urgent investigation and the suspension of Force Bridge’s operations.

According to Cyvers, an unauthorized and suspicious address successfully exploited the Force Bridge, temporarily seizing control and siphoning off a significant amount of various crypto tokens. The stolen assets included 257,800 USDT, 539.09 ETH, 898,300 USDC, 60,400 DAI, and 0.79 WBTC. The attacker then converted all the stolen funds into Ethereum (ETH), a common practice in crypto laundering due to the ease of buying and selling ETH. The investigator tracked the funds through Tornado Cash, an Ethereum mixer designed to obfuscate transactions from both senders and receivers, making it difficult to trace the origin and destination of the funds.

Tornado Cash, a decentralized platform, continues to operate despite being sanctioned by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) in 2022. The platform functions through decentralized smart contracts, which are challenging to shut down. This raises questions about accountability and recourse for victims of such exploits, as the funds are mixed with other assets in an unregulated marketplace.

The Nervos Network team has taken immediate action by pausing the Force Bridge contracts to prevent further damage. They are currently investigating the incident and gathering information to understand the full extent of the breach. While the specific vulnerability exploited has not been disclosed, the scale and precision of the attack suggest a highly skilled and sophisticated hacking operation.

This breach is part of a growing trend of cross-chain protocol hacks in the crypto space. Interoperability bridges, with their complex architectures and large amounts of liquidity, have become high-risk targets for hackers. Previous attacks on bridges like Poly Network, Wormhole, and Ronin Network have resulted in significant financial losses, highlighting the need for enhanced security measures in the DeFi ecosystem.

The cryptocurrency community has responded with concern and pressure on Nervos Network to communicate effectively with its user base during the investigation. The incident underscores the importance of real-time alerts for suspicious behavior to prevent funds from being moved beyond reach. Nervos Network is advising users to avoid using the bridge until further notice as they work to reestablish trust and transparency.

The hack of Force Bridge serves as a reminder of the security challenges in the DeFi space. As hackers targeting DeFi projects become more sophisticated, it is crucial to strengthen security measures to protect digital assets. The incident highlights the need for continuous vigilance and improvement in the security protocols of DeFi applications to mitigate the risks of such exploits.