Nemo Protocol Loses $2.4M to Hackers on Sui Blockchain Before Planned Maintenance
Nemo Protocol, a decentralized finance (DeFi) yield platform working on the Sui blockchain, fell sufferer to a cyberattack that resulted in $2.4 million in losses simply forward of its scheduled upkeep window on Monday and Tuesday.
The safety breach was initially detected by PeckShieldAlert on September 8, which reported by way of X that roughly $2.4 million in USDC had been drained from Nemo’s techniques.
According to the blockchain safety agency’s investigation, the hacker swiftly moved the stolen belongings by way of Circle by bridging USDC on Arbitrum to Ethereum.
$6.3M TVL Crashes 75% as Users Flee Nemo Protocol
Nemo acknowledged the incident in a subsequent tweet, stating that the protocol had skilled a safety breach the earlier night that affected its Market pool.
The improvement staff confirmed that an investigation was in progress to determine the basis reason for the vulnerability.
As a precautionary measure, all good contract operations had been briefly halted.
The assault’s influence was instantly felt. According to DeFiLlama data, Nemo’s complete worth locked (TVL) collapsed to roughly $1.57 million from over $6.3 million earlier than the breach.
User withdrawals exceeded $3.8 million price of USDC and SUI tokens as traders rushed to exit, fearing the exploit’s scope is likely to be extra intensive than initially disclosed.
The breach particularly focused Nemo’s yield-trading mechanism, which permits customers to divide staked belongings into Principal Tokens (PTs) and Yield Tokens (YTs) for yield hypothesis functions.
According to blockchain safety auditor CertiK, safety dangers could come up from a number of sources, together with coding errors, blockchain community vulnerabilities, and programming language limitations.
Sui Blockchain Security Crisis Contributed to $2.37 Billion DeFi Losses in 2025
Notably, the Nemo safety breach marks the third main hack focusing on DeFi protocols this month.
Earlier in September, Venus protocol lost $13.5 million to attackers, adopted by an $8.4 million theft from the Bunni protocol.
Similarly, within the Sui ecosystem, the Nemo incident follows one other vital breach on the Layer-1 community from earlier this 12 months.
On May 22, Cetus Protocol, a outstanding decentralized trade and liquidity supplier, suffered a $223 million exploit.
The attacker leveraged an arithmetic overflow flaw in a third-party code library to full the drain inside quarter-hour.
Moreover, these DeFi-focused assaults are on the rise in 2025.
SlowMist’s mid-year analysis revealed that the blockchain sector skilled over $2.37 billion in losses throughout 121 safety incidents throughout the first half of the 12 months.
DeFi protocols alone accounted for 76% of those instances, though centralized exchanges recorded larger particular person losses.
A complementary report from Hacken’s 2025 mid-year security assessment estimated complete crypto business losses at over $3.1 billion throughout the first six months.
Access management vulnerabilities, together with misconfigured wallets and compromised legacy keys, represented 59% of those losses, whereas DeFi-specific good contract exploits accounted for $263 million, or roughly 8%.
A current interview between Cryptonews and Mitchell Amador, founder and CEO of Immunefi, highlighted why typical safety methodologies show insufficient in Web3’s open-source ecosystem.
Amador defined that “Traditional audits, being static and pre-launch centered, fail to determine post-deployment vulnerabilities current in dynamic DeFi environments.”
He advocated for bug bounty applications as an answer to incentivize moral hackers, essentially restructuring cybersecurity economics to make defensive measures extra profitable than offensive ones.
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