Nemo Protocol, a yield-trading platform built on the Sui blockchain, was hit by a $2.4 million exploit on Sunday. The SUI token traded higher, despite the breach.
$2.4m drained through cross-chain swaps
On-chain security firm PeckShield flagged the attack, noting that hackers drained the stablecoin USDC from Nemo before bridging it from Arbitrum to Ethereum, the larger of the two blockchains. The stolen assets were then swapped into DAI and ETH, which cannot be frozen by issuers such as Circle.
Nemo reportedly suspended all smart contract activity shortly after the breach, saying vault assets remain secure but offering no technical explanation. Some community members pointed out that the protocol had announced “maintenance” around the time of the exploit, raising questions about transparency.
Data from DeFiLlama – an analytics platform for DeFi data – shows Nemo’s total value locked (TVL) collapsed from nearly $6.5 million to about $1.5 million, underscoring the scale of the breach.
A string of losses
The attack adds to a string of recent losses across Sui-based protocols. In May, Cetus Protocol was exploited for more than $200 million, while OlaXBT and Bunni lost $2 million and $8.4 million respectively earlier this month.
These incidents highlight persistent risks around smart contracts and cross-chain bridges. While they enable efficiency, even small flaws can expose millions of dollars, and once funds are moved across chains, recovery becomes far more difficult.
SUI defies protocol setbacks
Unlike earlier this year when Cetus’ losses dragged SUI lower, the latest breach had little impact. That is because Nemo is an application on Sui, not the base token itself. The exploit directly affects Nemo users but does not alter the economics or structure of SUI.
SUI finished Sunday up 1.8% and advanced another 2.6% to $3.4491 as at 16:34 UTC on Monday. That produced a market capitalization above $12.4 billion for the token.
Still, repeated protocol failures may weigh on confidence in Sui’s DeFi ecosystem over time, even if the core token remains insulated in the short run.
