Recent Developments in Cryptocurrency: Leadership Changes and Security Breaches

Layne Haber, Co-founder of Connext Network, discusses the Nomad bridge hack, how it happened, and what can be done to prevent these exploits. 

 

Show highlights:

• what Nomad is and how it works
• how the hack occurred and what the vulnerability was
• how much TVL the protocol had and how much of it was drained
• why the Nomad hack was unique
• how this exploit resembled the DAO hack on Ethereum
• the bounty program that Nomad offered and how hackers responded to it
• how Nomad is working with law enforcement, and the reasons why law enforcement has decided to get involved
• how Nomad has partnered with TRM Labs to help with tracking the hackers
• whether privacy developments in the crypto ecosystem will make it harder for law enforcement to track down hackers
• why cross-chain hacks happen so often
• what Layne thinks can be done to improve bridge security
• what mechanism can be implemented to prevent errors that enable these types of mass looting
• what Layne expects to see in the next few weeks around the Nomad exploit

 

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EPISODE LINKS

 

Layne

• Twitter: https://twitter.com/LayneHaber

Nomad Hack: 

• https://www.theblock.co/post/160731/nomad-cross-chain-crypto-bridge-suffers-possible-exploit
• Sam Sun explaining the hack: https://twitter.com/samczsun/status/1554252024723546112?s=20&t=SHIZQRqJ00mmuZVXFKXuZg
• Nomad’s bounty program: https://twitter.com/nomadxyz_/status/1555293965049630722?s=20&t=RxH5UuWbBXiRLqu5gHDNyg
• Pranay Mohan’s thread: https://twitter.com/pranaymohan/status/1556402131325915137?s=20&t=RxH5UuWbBXiRLqu5gHDNyg
• $36 million recovered: https://twitter.com/nomadxyz_/status/1556681397993058304?s=20&t=makkX3SX1ezAXQSd6fdZYA 

 

Cross-chain security: 

• Chainalysis article: https://blog.chainalysis.com/reports/cross-chain-bridge-hacks-2022/
• Adam Cochran on crypto bridges: https://twitter.com/adamscochran/status/1554473323073093634?s=20&t=8YFw6sPEGfjvh12q8w7p-Q
• Vitalik’s take on cross-chain applications: https://old.reddit.com/r/ethereum/comments/rwojtk/ama_we_are_the_efs_research_team_pt_7_07_january/hrngyk8/
• Previous Unchained coverage:
• • The Chopping Block: How to Improve DeFi and Cross-Chain Bridge Security: https://unchainedpodcast.com/bridge-hacks-have-caused-1-billion-in-losses-heres-why-bridge-security-is-tricky/
  • Bridge Hacks Have Caused ~$1 Billion in Losses. Here’s Why Bridge Security Is Tricky: https://unchainedpodcast.com/bridge-hacks-have-caused-1-billion-in-losses-heres-why-bridge-security-is-tricky/

 

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