Nemo Unveils $2.4M Hack Compensation Plan
Date: 2025-09-16 Author: Henry Casey Categories: BUSINESS
Following the September 8 incident, when an attacker stole $2.4 million by exploiting a vulnerability in the code, the Nemo team prepared a compensation scheme for users. It was decided to create a special token called NEOM, which will be issued in a 1:1 ratio to customer losses in dollars.
The distribution of tokens will be based on balance snapshots taken at the time of the protocol shutdown. To receive compensation, users will have to submit an application and transfer their remaining assets to new smart contracts that have passed the security audit. At the same time, they will be credited with NEOM corresponding to the amount of lost funds.
The team admitted that compensation in stablecoins would be preferable, but the project does not have sufficient reserves for immediate payments. Therefore, NEOM tokens will become a temporary tool, with the possibility of selling them through liquidity on Sui or holding them until the team strengthens the redemption pool. To do this, the developers intend to place the NEOM/USDC trading pair on a decentralized exchange in the Sui network.
Those who decide not to wait for the pool value to grow will have access to instant sale of tokens on the market. At the same time, the team stated that the funds that can be returned from the attacker will be sent to the pool along with part of the attracted capital.
For the transparency of the process, the developers promised to publish reports every two weeks and open an online panel where users can track the burning and redemption of NEOM in real time. In addition, the plans include tightening the code update procedures, conducting regular audits and launching a reward program for vulnerabilities found.
Recall that the reason for the hack was the introduction of an unconfirmed code fragment by one of the developers. A hacker took advantage of this through the instant lending mechanism, which allowed them to withdraw $2.4 million. Now the Nemo team is trying to restore the community's trust and show that such mistakes will not be repeated.
