Recently many bridge hacks happened like the Ronin and Wormhole bridge hacks.
In the hack, Nomad lost the wrapped Bitcoin worth 2.3 million.
Nomad is a cross-chain bridge that serves as a cheap and secure means of transferring funds between chains. It was attacked on August 1, and around $200 million dollars were stolen as a result of the hack. In a tweet, a team of Nomads stated that they were looking into the situation.
For bridges to function, tokens must first be locked up in a smart contract on one chain, after which they must be reissued on another chain in “wrapped” form. As happened in Nomad’s case, wrapped tokens lose their backing if the smart contract where they were initially deposited is hacked. As a result, they may become worthless.
As it happened suspiciously removing the wrapped Bitcoin (WBTC) worth 2.3 million from the bridge and including Wrapped Ether (WETH), Covalent Query Token (CQT), USD Coin (USDC), Frax (FRAX), IAGON (IAG), Hummingbird Governance Token (HBOT), Card Starter (CARDS), Gero Wallet (GERO), Dai (DAI), and others. At the time of the hack, many of the addresses received the tokens directly from the bridge.
Additionally, these tokens were all withdrawn by exploiters in an unusual pattern. They grabbed tokens with the same values off the bridge. Each of the attackers made more than 200 transactions for exactly 202,440.725413 USD.
Recent Crypto Bridge Hacks
In recent years, lots of hacks happened to the bridges of crypto exchanges and most recently the largest decentralized platform Ronin Bridge has been attacked and lost $600 million worth of crypto.
Another platform, Wormhole Bridge, has been drained off 300 million through a hack and now Nomad has gone through the hack. And at the time of investigation, they have noted that the MoonBeam has been essentially paused. In recent years, bridge attacks have been a particularly prevalent type of exploit.