Nomad Bridge Hackers Buy the Ethereum Dip With Stolen Crypto

Key Takeaways

• The Nomad bridge exploit was one of the biggest crypto hacks of 2022.
• Two years later, a wallet holding stolen funds has awakened.
• As crypto markets crashed on Monday, the exploiter wallet bought Ethereum before sending it to Tornado Cash.

Two years after the Nomad blockchain bridge was exploited to the tune of over $190 million, a wallet holding stolen funds has kicked into action.

Early Monday, Aug. 5, an address  labeled as Nomad Bridge Exploiter 2 purchased 16,892 Ether (ETH) worth $37.7 million at an average cost of 2,353 DAI, taking advantage of a market crash that has sent the price of cryptocurrencies tumbling

Nomad Exploiter Wallet Wakes up

Marking its first transaction in 500 days, the Nomad Bridge exploiter bought ETH close to the bottom of the trough on Monday morning. 

After swapping DAI for Ether via CoW, a Decentralized Exchange aggregator, the hacker transferred 2,400 ETH ($5.3 million) to Tornado Cash. 

Having fallen by more than 20% in a few hours to a low of $2,171 in the morning, the price of ETH remained volatile on Monday amid widespread chaos in financial markets. 

Stock Market Crash Triggers Crypto Volatility

The ongoing volatility reflects a wider financial crash affecting stock markets worldwide. 

Japan’s NIKKEI posted  its worst two-day decline since 1987, dropping 22% over the past three business days. The European and US stock markets were also hit by the storm, with the S&P 500 and DAX shedding 7% at the same time.

Looking over to the crypto market alongside Ethereum, double-digit losses were common across the board. 

In 24 hours, Bitcoin had fallen nearly 16%, while some meme coins lost more than 30% of their value overnight. However, although some, like the Nomad hacker, are buying the dip, others appear to be abandoning the ship.

Jump Crypto Sells Ethereum

In recent days, Jump Crypto has unstaked hundreds of millions of ETH and sent it to exchanges. The move has sparked fears that the trading firm could be in difficulty and needs the liquidity to cover margin calls. 

According to reports, the trading firm had unstaked nearly $200 million worth of ETH and sent it to exchanges, potentially to sell it. Jump Crypto’s selling spree led to over $350 million in liquidations.

Cake Group CEO Dr. Julian Hosp raised concerns  that Jump Crypto’s recent liquidation may indicate deeper troubles within the broader Jump Trading Group.

Specifically, Hosp speculated that the firm’s moves could indicate a need for liquidity to meet margin calls, which would be a worrying development for the company.

Hosp also expressed fears that Jump Trading Group could be thinking about a complete exit from the crypto industry due to growing legal and regulatory pressures stemming from its involvement in the 2022 Terra-Luna collapse.

Meanwhile, liquidations on Ethereum’s decentralized finance platforms have surged, creating a leverage flush that could further exacerbate ETH sell pressure.

About the Author

James Morales

Although his background is in crypto and FinTech news, these days, James likes to roam across CCN’s editorial breadth, focusing mostly on digital technology. Having always been fascinated by the latest innovations, he uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.

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