Nemo Protocol, a decentralized finance (DeFi) platform operating on the Sui blockchain, has reportedly suffered a significant hacking incident that resulted in losses amounting to $2.4 million. This breach was detected on a Sunday evening, just ahead of scheduled maintenance activities set for the following Monday and Tuesday.
The attack was confirmed by blockchain security firm PeckShield, which has been monitoring the situation closely. In response to the crisis, Nemo Protocol took to Twitter to announce a “security incident” that had compromised its market pool. The platform stated, “We are investigating the matter and have suspended all smart contract activity for the time being. We plan to share when more information becomes available.” Despite the theft, the protocol assured users that all vault assets remained untouched.
However, community members have expressed frustration over a lack of communication, particularly on platforms like Discord and Telegram, where moderators have been notably silent. Concerns have been raised over the absence of detailed information following the initial announcement, leading to questions such as, “I wonder why there is no message from the official team except the very vague announcement?”
This incident highlights ongoing vulnerabilities in the cryptocurrency sector, especially in a year marked by increased cyber attacks. According to Chainalysis’ 2025 Crypto Crime Mid-Year Update, hackers have already stolen over $2.17 billion from various cryptocurrency services, surpassing the total losses recorded for all of 2024. Notably, much of this loss can be traced back to a staggering $1.5 billion theft from the ByBit exchange, attributed to North Korean cyber operatives. As of June, hacks had already resulted in 17% more theft than during 2022, a year previously labeled the worst on record for crypto crime.
In addition to larger centralized exchanges, there’s been a notable shift in tactics, with attackers increasingly targeting individuals through methods such as “wrench attacks” and personal wallet compromises.
While Nemo Protocol has confirmed that vault assets remain secure, users have reported issues with the visibility of their deposited assets within the platform’s vault feature. The increasing sense of uncertainty and concern among community members is exacerbated by the lack of timely updates from the team.
As for the background of Nemo Protocol, it positions itself as yield infrastructure on the Sui blockchain. However, information about its founder, Alex Yeung, is scant, with little online presence apart from advertisements for various talks and Ask Me Anything sessions. The platform’s website lacks comprehensive details about the team, and a link intended for user contact is currently broken.
This incident has raised questions regarding transparency and security within the crypto arena, as users continue to seek clarity amidst the ongoing probe into the hack and the future of the platform.
