Nemo, a yield optimization protocol on the Sui blockchain, was hit by a $2.4 million exploit on Monday, exposing continued security vulnerabilities in decentralized finance (DeFi).
The attacker stole USDC, the dollar-pegged stablecoin issued by Circle, and reportedly bridged the funds from Arbitrum to Ethereum, according to blockchain security firm Peckshield.
Nemo enables users to tokenize staked assets into Principal Tokens (PT) and Yield Tokens (YT), allowing them to trade, hedge, or speculate on future yields. Following the hack, the protocol’s total value locked (TVL) dropped sharply to $1.53 million from over $6 million, per DeFiLlama data.
The incident highlights that despite growing institutional adoption in crypto, DeFi platforms remain susceptible to exploits and security risks.
