Sui-Based Yield Protocol Nemo Loses $2.4M in USDC Exploit

DeFi's persistent security flaws resurfaced as Nemo, a yield optimization protocol on the Sui blockchain, suffered a $2.4 million exploit. The attacker drained USDC stablecoins before bridging the funds from Arbitrum to Ethereum, according to blockchain analytics firm Peckshield.

The breach triggered a 75% collapse in Nemo's total value locked, plummeting from $6 million to $1.53 million. The protocol specializes in yield tokenization, allowing users to split staked assets into tradable Principal and Yield Tokens.

This incident underscores the paradox of DeFi's growth—while institutional adoption accelerates, fundamental vulnerabilities remain unaddressed. The sector continues to hemorrhage funds through exploits despite advancing blockchain technology and regulatory scrutiny.