08.09.2025 08:24

An incident of significant financial loss has struck the Nemo Protocol, a platform specializing in yield trading operations within the Sui network. Early on September 8th, a substantial security breach occurred, resulting in the misappropriation of approximately $2.4 million worth of USDC. This alarming development was brought to light by on-chain security experts.

Following the exploit, the perpetrator swiftly initiated the transfer of the ill-gotten USDC from the Arbitrum network. Observers noted a strategic conversion of these assets into DAI and Ethereum. This maneuver is widely understood as a defensive measure, aiming to circumvent the potential for Circle, the issuer of USDC, to freeze the funds and thereby render them unusable to the illicit actors. By migrating to more decentralized digital assets, the hackers sought to ensure the fungibility and inaccessibility of their stolen gains on the blockchain.

Compounding the concern, Nemo Protocol has remained conspicuously silent regarding the breach. While the protocol has not officially communicated any information about the suspicious financial movements, community members have voiced their disquietude. Reports indicate that Nemo had previously posted a maintenance notification on Discord, suggesting a planned downtime for September 8th and 9th, occurring mere hours before the exploitative activity was detected. This lack of transparent communication, particularly on platforms where the protocol maintains its largest audience, has fueled user apprehension and speculation.