Breaking News: Founder of DeFi insurance platform Nexus Mutual targeted in hack

The DeFi insurance platform Nexus Mutual announced on Twitter tonight (14th) at 19:13 that founder Hugh Karp's personal address was attacked, and assets were drained by a user of Nexus Mutual. The announcement stated that only Hugh Karp's address was compromised.

Decentralized finance insurance platform Nexus Mutual announced on the evening of the 14th at 19:13 on Twitter that founder Hugh Karp's private address was attacked, and assets were drained by a Nexus Mutual member. The announcement specifies that only Hugh Karp's address was compromised.

According to the announcement: "Preliminary findings suggest that someone targeted Hugh Karp, who was using a hardware wallet at the time. The attacker gained remote access to his computer and took control of his MetaMask, leading him to transfer assets to the attacker's address."

The attacker completed Nexus Mutual's KYC process 11 days ago and transferred membership to a new address last Friday. Nexus Mutual stated that no funds were lost, and the pool's funds and system remain secure. The investigation is ongoing.

The announcement urges assistance in preventing further fund outflows: https://etherscan.io/address/0x09923e35f19687a524bbca7d42b92b6748534f25#tokentxns

Some funds have already been traded out on the decentralized exchange 1 Inch.

Hugh Karp warned the attacker not to attempt to withdraw NXM, as it will lead to trouble. Additionally, he mentioned that if the hacker is willing to return the funds, he will drop all investigations and offer a reward of $300,000.

To the attacker. Very nice trick, definitely next level stuff.

You'll have trouble cashing out that much NXM.

If you return the NXM in full, we will drop all investigations and I will grant you a $300k bounty.

— Hugh Karp 🐢 (@HughKarp) December 14, 2020

Recently, Nexus Mutual integrated its platform with another insurance platform, Cover Protocol. However, due to the loss of funds not being associated with the platform itself, it may be challenging to seek compensation.

🚨New contract alert!🚨

☂Members can now stake on @CoverProtocol to enable cover purchases.

Audit: https://t.co/6gSMjlHKea

GitHub: https://t.co/Z3NjObDDwN pic.twitter.com/p889BFi03v

— Nexus Mutual 🐢 (@NexusMutual) December 11, 2020

Update on December 15:

Nexus Mutual provided an update on the hacking incident, stating that they have identified some suspicious addresses and that some addresses' KYC information indicates a Singapore origin. They successfully contacted a suspect who briefly changed their Telegram name and deleted conversations. Nexus Mutual mentioned that they will continue to dig for more information and urge the hacker to come forward for a dialogue.

Hello, there! As promised, an update on yesterday's attack on @HughKarp

We’re still investigating the recent events and have barely scratched the surface.

Here’s an interesting address to watch:https://t.co/k8xITO0kbT.

— Nexus Mutual 🐢 (@NexusMutual) December 15, 2020