$2.4 Million Stolen in Nemo Protocol Attack: Investigation Ongoing

- DeFi platform Nemo Protocol breached for $2.4 million in USDC. - Smart contract activity halted, investigation launched. On September 8, 2025, PeckShield reported that an attacker exploited the Sui-based decentralized finance (DeFi) platform Nemo Protocol, stealing approximately $2.4 million in USD Coin (USDC). The attacker subsequently drained the funds by transferring the stolen stablecoins from the Arbitrum network to the Ethereum blockchain. In response, Nemo Protocol announced on its official Telegram channel on September 8 that it had suspended all smart contract activity to prevent further losses, while assuring users that funds in its vaults remain unaffected. The team has since launched an investigation to determine the exploit's cause and promised to update its community as more details emerge. Although Nemo Protocol has not yet disclosed the exact vulnerability, security experts speculate that the incident could involve price oracle manipulation. This method allows an attacker to alter a protocol's price data to illegitimately profit or acquire assets. To date, however, no official findings from Nemo Protocol or third-party auditors have corroborated this theory. The attack highlights persistent security challenges in the DeFi space, particularly concerning cross-chain bridges and protocol integrity. It also underscores the need for enhanced infrastructure within the Sui ecosystem and across all decentralized finance platforms. Meanwhile, on-chain analytics firms are actively tracking the attacker’s wallet for any movement of the stolen funds as the investigation continues. According to CoinMarketCap on September 8, Sui (SUI) was trading at $3.438 as of 09:09 UTC, marking a 1.48% increase in 24-hour volume. In the same timeframe, USD Coin (USDC) remained stable at $1, with a negligible 0.013% change.