FTC Mandates Illusory Systems to Repay Users After $186M Crypto Bridge Hack
- Illusory Systems’ Nomad crypto bridge lost $186 million due to a poorly tested software update.
- The FTC proposed a settlement requiring Illusory to return recovered funds and enhance its security measures.
- Hackers exploited a critical vulnerability in Nomad’s smart contracts on August 1, resulting in significant losses.
- Nomad recovered $22 million of the stolen assets following the hack.
- Israeli authorities arrested Alexander Gurevich for allegedly initiating the exploit.
The Federal Trade Commission has intervened after Illusory Systems’ Nomad bridge suffered a major security breach, losing $186 million in digital assets due to an untested software update. Under the proposed settlement, Illusory must overhaul its security program and return any recovered funds to users affected by the hack.
The incident highlights the importance of rigorous testing and robust security practices in DeFi platforms like Nomad, which failed to prevent significant consumer losses despite marketing itself as “security-first.” (Source)
