Will the Nomad Mass Looting Change How Law Enforcement Treats DeFi Hacks? - Ep. 382

Layne Haber, Co-founder of Connext Network, discusses the Nomad bridge hack, how it happened, and what can be done to prevent these exploits. 
 
Show highlights: what Nomad is and how it works
how the hack occurred and what the vulnerability was
how much TVL the protocol had and how much of it was drained
why the Nomad hack was unique
how this exploit resembled the DAO hack on Ethereum
the bounty program that Nomad offered and how hackers responded to it
how Nomad is working with law enforcement, and the reasons why law enforcement has decided to get involved
how Nomad has partnered with TRM Labs to help with tracking the hackers
whether privacy developments in the crypto ecosystem will make it harder for law enforcement to track down hackers
why cross-chain hacks happen so often
what Layne thinks can be done to improve bridge security
what mechanism can be implemented to prevent errors that enable these types of mass looting
what Layne expects to see in the next few weeks around the Nomad exploit
 
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EPISODE LINKS  
Layne Twitter: https://twitter.com/LayneHaber

Nomad Hack:  https://www.theblock.co/post/160731/nomad-cross-chain-crypto-bridge-suffers-possible-exploit
Sam Sun explaining the hack: https://twitter.com/samczsun/status/1554252024723546112?s=20&t=SHIZQRqJ00mmuZVXFKXuZg

Nomad’s bounty program: https://twitter.com/nomadxyz_/status/1555293965049630722?s=20&t=RxH5UuWbBXiRLqu5gHDNyg

Pranay Mohan’s thread: https://twitter.com/pranaymohan/status/1556402131325915137?s=20&t=RxH5UuWbBXiRLqu5gHDNyg

$36 million recovered: https://twitter.com/nomadxyz_/status/1556681397993058304?s=20&t=makkX3SX1ezAXQSd6fdZYA 
 
Cross-chain security:  Chainalysis article: https://blog.chainalysis.com/reports/cross-chain-bridge-hacks-2022/

Adam Cochran on crypto bridges: https://twitter.com/adamscochran/status/1554473323073093634?s=20&t=8YFw6sPEGfjvh12q8w7p-Q

Vitalik’s take on cross-chain applications: https://old.reddit.com/r/ethereum/comments/rwojtk/ama_we_are_the_efs_research_team_pt_7_07_january/hrngyk8/

Previous Unchained coverage:
The Chopping Block: How to Improve DeFi and Cross-Chain Bridge Security: https://unchainedpodcast.com/bridge-hacks-have-caused-1-billion-in-losses-heres-why-bridge-security-is-tricky/

Bridge Hacks Have Caused ~$1 Billion in Losses. Here’s Why Bridge Security Is Tricky: https://unchainedpodcast.com/bridge-hacks-have-caused-1-billion-in-losses-heres-why-bridge-security-is-tricky/

 
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