Sui-Based Nemo Protocol Falls Victim to Cyber Attack, Loses $2.4 Million

Nemo Protocol, a Sui-based decentralized project, has become the latest victim of a cyberattack. According to on-chain data from the cybersecurity firm PeckShield, the exploit resulted in a loss of $2.4 million worth of USDC.

#PeckShieldAlert @nemoprotocol on @SuiNetwork has been exploited for $2.4M

The hacker bridged $USDC via Circle from Arbitrum to Ethereum. pic.twitter.com/QSB0ec7TZy

— PeckShieldAlert (@PeckShieldAlert) September 8, 2025

Nemo Protocol is a DeFi platform on the Sui blockchain that focuses on yield tokenization. It creates two types of tokens, Principal Tokens (PT) to protect the initial investment, and Yield Tokens (YT) for future earnings. The platform lowers risks for liquidity providers by automating yield farming. 

Hackers Cash in on Loophole

The hackers exploited a flaw in a cross-chain bridge, allowing them to manipulate the transaction validation process and steal $2.4 million in USDC. By exploiting this weakness, they accessed various liquidity pools and quickly withdrew the funds. Blockchain security firm PeckShieldAlert discovered the issue and alerted the community on the X platform.

The community quickly reacted on X to the incident, displaying a mix of frustration and concern, and suggested an alternative remedy to the increase in similar exploits. One user, @CeramicToken, said:

“Another exploit highlights the urgent need for robust security protocols in DeFi! As we witness the $2.4M breach on @nemoprotocol, it’s a reminder of why $CL8Y’s Guardian Modules are essential for protecting institutional assets.”

Nemo Responds to Exploit

The Nemo Protocol team has confirmed the $2.4 million hack on the Sui Network via a message on their official Telegram channel. In response, they said:

“Dear Nemo Community, a security incident occurred last night, impacting the Market pool. We are investigating the matter and have suspended all smart contract activity for now. We will share more information when we have it.”

The team has also maintained that all vault assets are safe, assuring users of their safety. However, the cause of the hack has not yet been revealed.

Meanwhile, recent similar incidents have demonstrated the frantic efforts of blockchain security firms to expose these exploits. For instance, PeckShield played a major role in escalating the incident, which involved a $7 million exploit on Odin.fun, a Bitcoin-based memecoin launchpad and trading platform. The awareness prompted the immediate suspension of trading and withdrawals to prevent further losses.

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