NEAR Protocol Blocks $50 Million in Stolen Funds, Then Loses $3.8 Million in Own Exploit

NEAR Protocol (CRYPTO:NEAR) has been in the spotlight recently, facing a security challenge while riding one of crypto's most explosive monthly rallies. Despite blocking over $50 million in stolen funds from hackers who targeted Bitget, NEAR lost $3.8 million in the NEAR Intents exploit on October 1. The NEAR Intents platform, a cross-chain swap service, used its SHIELD security system to block most of the stolen funds, but approximately $503,000 was frozen mid-swap, and about $166,000 was successfully transferred out.

The hackers redirected their efforts elsewhere, using tools like Zcash's privacy pool to obscure their trail. Just two days later, on October 1, NEAR Intents faced its own internal security challenge, losing $3.8 million. The vulnerability stemmed from a bug in the smart contract that manages deposits and withdrawals on the cross-chain bridge.

Fortunately, the exploit's impact was contained. Illia Polosukhin, a co-founder of NEAR, stated that the loss was limited to Tether dollar tokens on the BNB Smart Chain. The SHIELD system detected the suspicious activity and paused operations across 11 networks. NEAR Intents also committed to compensating affected users, and the NEAR blockchain and its main token remained secure.

Remarkably, within less than a day, the hacker returned the entire $3.8 million. Despite the recent turmoil, NEAR holders are still ahead, with a 16% weekly gain, a 211% 60-day gain, and a 160% 90-day gain. However, the 9.1% drop to $4.84 on October 1 reflects the volatility often seen in rapidly rising assets, especially amid negative news.