Nemo Protocol, a decentralized finance (DeFi) platform operating on the Sui blockchain, has become the latest victim of a sophisticated cyberattack. The security breach exploited a vulnerability in the smart contract infrastructure, leading to the loss of funds totaling around $2.4 million.

The incident has sparked widespread concern in the blockchain community, as Nemo had been seen as a promising project within the Sui ecosystem. The exploit was reportedly carried out through a flash loan attack—a common method used by hackers to manipulate liquidity protocols and drain assets rapidly.

In response, Nemo’s development team has temporarily paused operations and is working with blockchain forensic experts to trace the stolen assets. They have also notified relevant exchanges in an effort to block any attempt to launder the stolen crypto.

This attack highlights the ongoing challenges DeFi platforms face in maintaining robust security. It serves as a reminder that even promising projects must remain vigilant, investing in audits and rapid incident response to protect user funds.