The U.S. Federal Trade Commission (FTC) has directed Allusory Systems, the operator of the Nomad cross-chain cryptocurrency bridge, to return funds to affected users following a major hack in 2022. Approximately $186 million worth of cryptocurrency was stolen during the breach. The commission stated that Allusory Systems provided misleading information regarding security measures and failed to prevent the hack. Nomad is a platform that facilitates asset transfers across different blockchain networks, enhancing liquidity and interoperability in the crypto market. However, security challenges remain a significant concern for such cross-chain bridges. The Nomad hack highlighted the urgent need for decentralized finance (DeFi) platforms to adopt stronger security protocols to safeguard user funds. Many Nomad users suffered substantial investment losses due to the incident. The FTC’s decision signals increased regulatory scrutiny over crypto platforms’ security and consumer protection. This move aims to restore user confidence in the market while warning other crypto projects to improve their security measures. Although such actions may promote greater transparency and accountability in the crypto sector, risks of hacking and fraud persist. Users are advised to carefully assess platform security and legal standing before investing to minimize potential losses.
Source: decrypt
