Nemo Protocol Exploited: A Growing Concern for SUI Blockchain Security
Nemo Protocol, a DeFi yield platform built on the SUI blockchain, has fallen victim to an exploit resulting in the theft of millions of dollars in stablecoins. This incident has raised concerns about the security of the SUI blockchain and the vulnerability of DeFi protocols to hacking attacks.
The exploit, which occurred on September 8th, was first detected by Peckshieldalert, a blockchain security company. According to their analysis, approximately $2.4 million in USDC was stolen from Nemo. The attacker quickly bridged the stolen funds to Ethereum, highlighting the need for improved security measures to prevent such incidents.
Impact on Nemo Protocol and SUI Blockchain
The attack had an immediate impact on Nemo Protocol, with its total value locked (TVL) dropping from over $6 million to around $1.53 million, according to data from Defillama. The exploit targeted the protocol’s earnings trading system, which allows users to split assets into principal tokens (PTS) and yield tokens (YTS) to speculate on future returns.
Nemo confirmed the attack on Twitter, stating that an investigation was underway to determine the cause of the exploit. The protocol has also suspended all smart contract activities to prevent further losses. The community is eagerly awaiting updates on the incident and the measures being taken to prevent similar attacks in the future.
Broader Concerns about SUI Blockchain Security
The Nemo Protocol exploit is not an isolated incident, as another major protocol, Cetus, was similarly affected just a few months ago. On May 22, Cetus Protocol, a leading decentralized exchange and liquidity provider, was exploited for $223 million. The attacker took advantage of an arithmetic overflow vulnerability in a third-party math library, emptying the protocol’s funds in less than 15 minutes.
SUI validators and ecosystem partners quickly froze around $162 million of the stolen assets, and $60 million were bridged to Ethereum. Cetus suspended its smart contracts and initiated a restoration plan, including a $6 million bounty and discussions about a “whitehat settlement” that offered the attacker amnesty if the remaining funds were returned.
These high-profile exploits are part of a larger trend of increased DeFi hacks in 2025. According to the Slowmist Midmist report, the blockchain industry suffered losses of over $2.37 billion in the first half of the year, with 121 incidents resulting in centralized losses. The Hacken Security Report 2025 mid-year report estimates that the entire crypto industry has lost over $3.1 billion in the first six months, with failures in access control and DeFi-specific smart contract vulnerabilities being the primary causes.
As hackers continue to target DeFi protocols across various chains, the SUI ecosystem is not immune to these threats. With two major exploits in Cetus and Nemo this year, it remains to be seen whether new security measures can keep up with the increasing sophistication of attacks.
For more information on the Nemo Protocol exploit and its impact on the SUI blockchain, visit https://crypto.news/sui-based-nemo-protocol-exploited-for-2-4m/
