TLDR
- Nemo Protocol, a DeFi platform on the Sui blockchain, was hacked for $2.4 million.
- The attack occurred just before the scheduled maintenance for the platform.
- The platform suspended all smart contract activity while investigating the breach.
- All Vault assets were reported as unaffected by the security incident.
- Community members expressed frustration over the lack of communication from the team.
Nemo Protocol, a decentralized finance (DeFi) platform built on the Sui blockchain, suffered a significant security breach, losing $2.4 million. According to blockchain security firm PeckShield, the hack occurred late Sunday. The attack preceded the platform’s planned maintenance for Monday and Tuesday.
The protocol suspended all smart contract activity after the incident.
“We are investigating the matter and will share updates when available,” Nemo stated on X.
They confirmed that all Vault assets remained untouched during the attack.
#PeckShieldAlert @nemoprotocol on @SuiNetwork has been exploited for $2.4M
The hacker bridged $USDC via Circle from Arbitrum to Ethereum. pic.twitter.com/QSB0ec7TZy
— PeckShieldAlert (@PeckShieldAlert) September 8, 2025
Sui-based Nemo Protocol Targeted in $2.4M Hack
Nemo Protocol revealed that the breach impacted its market pool. The platform’s team took immediate action by halting all smart contract operations. Community members expressed frustration as they noticed their assets were not appearing in the vault feature on Discord.
Nemo experienced a security incident occurred last night, impacting the Market pool.
We are investigating the matter and have suspended all smart contract activity for the time being. We plan to share when more information becomes available. All Vault assets remain untouched.…
— Nemo (@nemoprotocol) September 8, 2025
Although the attack occurred on the eve of the platform’s maintenance, the exact method of the exploit remains unclear. The team has yet to disclose further details regarding the breach. In the meantime, Nemo assured users that its vault assets were unaffected by the hack.
The hack of Nemo Protocol adds to the mounting list of security incidents in the crypto space. Chainalysis reports that hackers have already stolen over $2.17 billion in 2025. This figure surpasses the total thefts from 2024, with a significant portion attributed to a $1.5 billion theft from ByBit, allegedly linked to North Korean actors.
Nemo’s security breach adds to the growing concerns over DeFi platform security. Hackers are increasingly targeting these platforms, with “wrench attacks” and personal wallet compromises becoming more common. As losses from crypto hacks continue to rise, experts warn that 2025 could set new records for stolen funds.
Lack of Communication Raises Concerns
Community members voiced their dissatisfaction with the lack of updates from the team. Some users questioned why there had been no official communication beyond the initial vague statement. As the team remains silent on the full details, the community has expressed growing concern over the situation.
The platform’s silence has fueled suspicion among users who feel left in the dark.
“I wonder why there is no message from the official team except the very vague announcement?” one user questioned on Discord.
Despite the frustration, the team has promised to provide further information once the investigation progresses.
Nemo Protocol, founded by Alex Yeung, operates as a yield infrastructure on Sui. However, Yeung’s online presence is minimal, and the platform’s website offers little information about the team. With increasing scrutiny, users await clarity on the incident and the platform’s future.
