Sui's Nemo Protocol Hacked for $2.4 Million USDC
- Nemo Protocol on Sui suffered a $2.4 million USDC exploit.
- Investigation ongoing with smart contract activity suspended.
- User confidence shaken as TVL drops significantly.
Nemo Protocol, a decentralized finance platform on the Sui blockchain, was exploited for $2.4 million in USDC on September 8, 2025, bridging assets across Ethereum and Arbitrum.
This highlights ongoing vulnerabilities in cross-chain DeFi operations, leading to severe loss of user confidence as Total Value Locked nosedived from over $6 million to $1.53 million.
The Sui-based Nemo Protocol was exploited on September 8, 2025, resulting in $2.4 million in USDC losses. Hackers bridged the assets cross-chain via Arbitrum and Ethereum to avoid detection, and investigations are currently active.
Despite no public statements from leadership, Nemo Protocol has confirmed the suspension of smart contract activity. The Nemo Protocol Team stated, “Dear Nemo community, a security incident occurred last night and our Market pool was affected. We are investigating the matter and have suspended all smart contract activity for the time being.” source
The hack caused Nemo Protocol’s Total Value Locked (TVL) to plunge from over $6 million to $1.53 million. The rapid liquidity drain reflects decreased user confidence and market repercussions. Communities are reportedly frustrated over communication delays.
While vault assets were reportedly safe, the incident illustrates the vulnerability of DeFi platforms to cross-chain exploits. Efforts to freeze assets were thwarted by asset swapping to decentralized tokens, complicating recovery attempts.
The exploit mainly involved USDC, with subsequent swaps to DAI and ETH to avoid freezing. PeckShieldAlert reported, “The hacker bridged $USDC via Circle from Arbitrum to Ethereum.”
Previous DeFi attacks showcase similar tactics, emphasizing the need for enhanced protocol security. The impact extends beyond financial losses, affecting regulatory and technological strategies.
Future outcomes may involve strengthened security measures, regulatory scrutiny, and technological advancements in DeFi. Understanding these risks can guide better infrastructure design. Cross-chain vulnerabilities remain a significant challenge, requiring proactive measures.
