Nexus Mutual Hacker Taunts Founder With 4,500 ETH Ransom

Share Article
In Brief
  • Hugh Karp, the founder of Nexus Mutual, received an ominous message from his purported hacker.

  • The anonymous perp threatened to hold the stolen NXM unless Karp pays a hefty ETH ransom.

  • The initial hack resulted in ~$8 million worth of stolen NXM tokens.

  • promo

    Want to learn how to trade? Get a beginners guide from _BeInCrypto Academy_ now!

The Trust Project is an international consortium of news organizations building standards of transparency.

The Nexus Mutual saga continues as the hacker who forced their way into the founder’s wallet has now included a ransom threat.



EtherText, a Twitter channel that relays text messages embedded within Ethereum transactions, displayed the message.

Someone claiming to be responsible for the hack sent the founder and recent wallet victim, Hugh Karp, an ominous threat. In the Ethereum transaction sent to one of Karp’s ETH addresses, a bold message appeared:



“Hello Hugh. I will not sell wNXM any more until wNXM recovers its value or you send me 4.5k ETH. If you need any negotiation with me, send msg to my eth address. Following are your addresses. You are rich, Hugh.”

A Threat and Ransom Demand

The hacker who claimed they had stolen the $8 million worth of NXM threatened Karp that if he didn’t pay a 4,500 Ether ransom, currently worth ~$2.8 million, they would continue holding the tokens and then dump them when the price recovered.

So far, the NXM price has not reacted negatively, and NXM’s market cap has remained over $100 million. The ransom is significantly smaller than the amount stolen in the hack. How will the Nexus Mutual team and community react moving forward? 

What is Nexus Mutual?

Nexus Mutual is a peer-to-peer insurance platform designed to protect users from potential vulnerabilities or bugs that could affect smart contracts. The platform is built on Ethereum.

The goal is to allow users to pool their funds and mitigate potential risk by supplying an insurance alternative for smart contracts.

The fund is community-owned, and NXM holders receive any additional capital above what needs to be paid out in insurance claims to users.

Its first available product, Smart Contract Cover, allows users to purchase protection against financial loss from another party’s misuse of a smart contract.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Harrison is an analyst, reporter, and lead specialist at BeInCrypto based out of Tel Aviv, Israel. Harrison has been involved in the cryptocurrency space since late 2016 and is passionate about decentralized ledger technology and its potential.

Follow Author

Daily signals, Bitcoin analytics and traders chat. Join our Telegram today!

Let’s Go

What are Crypto Wallets? Everything You Need to Know

Learn now