Nemo Protocol Launches NEOM Debt Tokens for $2.6M Hack Victims

Nemo Protocol drops redemption bombshell—debt tokens for hacked investors.

The $2.6M Solution

Victims of September's exploit now hold NEOM tokens representing their lost funds. The protocol bypasses traditional insurance claims—cutting straight to blockchain-native restitution.

Active Recovery Mode

Nemo's team deploys smart contracts that convert hack losses into tradable debt instruments. No waiting for regulators—just pure DeFi maneuvering.

Because sometimes in crypto, your get-rich-quick scheme becomes someone else's get-paid-slowly experiment.

Compensation plan: NEOM debt tokens

Under the plan, the platform will issue NEOM debt tokens, with each token equalling $1. The post reads, “Our goal is to make every user whole by issuing a debt token equal to their loss in USD, with the understanding that its value may change over time depending on market conditions and the progress of fund recovery.”

Nemo has also introduced measures to secure user funds:

• Users can move their remaining assets from compromised pools to new, secure smart contracts with a single click.
• Users receive NEOM debt tokens equal to their loss in USD when claiming their migrated assets.

The users can choose if they want to go for an immediate AMM exit or continue to hold their NEOM while waiting for the hacked funds to be recovered. The post also stated that there will be “a dedicated, one-stop portal developed specifically for affected users.” Through this, they can check their eligibility for the tokens and claim them. The NEOM tokens will be airdropped proportionally directly into the wallets of the affected users.

The $2.6M hack

On September 7, Nemo Protocol suffered a hack that drained $2.6 million from its liquidity pools. The platform quickly paused operations and took an on-chain snapshot to calculate users’ losses fairly.

The breach has occurred due to two main issues. First, the developer deployed a new feature without adequate audits, such as a public flash loan feature and a query function that was able to change contract data. Both of these were manipulated by the attacker.

Second, the platform’s governance permitted an individual developer to deploy code unaudited, and alarms issued by auditors were disregarded.

Nemo said they will set up a dedicated website to track the NEOM burn progress, so the community can monitor real-time updates on the initiative.

Also Read: Hacker Exploits Bitcoin-based Yala Protocol’s Yu Token on Polygon