The plan, which includes technical migration actions, market liquidity, and forensic recovery, aims to contain the impact on users and stabilize the ecosystem, as confirmed by the official Nemo profile.
For context on attack dynamics and recovery in the DeFi sector, see Chainalysis – 2024 Crypto Crime Report and an informative overview on Crypto hack: Chainalysis counts $2.2 billion in stolen funds in 2024.
According to the data collected by our on-chain analysis lab, the activity immediately following the exploit showed rapid movements towards stablecoin conversion addresses and attempts to disperse into multiple wallets.
Industry analysts note that the 1:1 reimbursement is a solution adopted in similar cases to limit the net loss of users and allow for a structured recovery roadmap.
We have validated the TVL estimates and withdrawals by cross-referencing the on-chain metrics with public monitoring dashboards.
Update as of September 15, 2025: data and estimates reported in the article are updated to this date.
In operational summary
- 1:1 Reimbursement via NEOM Debit tokens, calculated based on a pre-exploit snapshot to uniquely capture positions.
- Automatic migration of assets from compromised pools to renewed and verified contracts, to minimize operational friction.
- Liquidity guaranteed through AMM NEOM/USDC pools to allow users to exit or redistribute risk according to their needs (USDC: the stablecoin lands on the Sui blockchain).
- Primary source of reimbursement: funds recovered from the attacker, with potential support from external capital as supplementation.
Key Facts
- Estimated loss: approximately 2.6 million dollars stolen (confirmation on twitter.com/nemoprotocol).
- TVL: the Total Value Locked went from approximately 6.3 million dollars pre-attack to about 1.57 million after the incident, highlighting an outflow of over 75% of the initial value.
- Timing: the attack occurred at the beginning of September 2025, with a compensation plan communicated immediately afterward and ongoing updates provided regularly.
Impact on Liquidity and Market Dynamics
The attack triggered rapid withdrawals, exceeding 3.8 million in USDC and SUI, creating liquidity tension and pressure on the pools.
To facilitate an orderly exit, Nemo activated AMM NEOM/USDC pools on the main DEX of Sui, setting a market price for the debt token that reflects recovery expectations and repayment timelines (twitter.com/nemoprotocol). In this context, pricing transparency helps calibrate user decisions.
Recovery Program: Structure and Priorities
The plan is structured along three main directions:
- Forensic recovery of funds: on-chain tracking and cooperation with centralized exchanges and security teams (the Bybit exploiter launders through pump.fun).
- External capital: potential targeted liquidity injections to accelerate the repayment process, where necessary.
- “Waterfall” mechanism: the recovered funds will be progressively converted into redeemable value for NEOM holders, with transparent priorities.
The primary source of reimbursements remains the capital recovered from the attacker’s activity; additional resources could reduce the waiting times for exposed users (twitter.com/nemoprotocol). That said, the timeline will depend on the effectiveness of forensic procedures and the cooperation of intermediaries.
Technical Context: What Went Wrong and How Security Changes
The internal post-mortem shed light on a procedural error: code was deployed that was not fully reviewed, containing exposed flash loan functions and queries capable of altering the state of contracts.
The deployment occurred via single signature, bypassing standard checks, as highlighted in the official communications (twitter.com/nemoprotocol). It should be noted that the chain of control is now subject to targeted strengthening.
The migration towards secure contracts includes:
- One-click transfer from compromised smart contracts to new secure instances.
- Additional audits conducted through external partners and formal verification of changes (Uniswap launches the largest bug bounty in history).
- Real-time monitoring of suspicious addresses and coordination with centralized exchanges for potential asset blocking.
NEOM, the debt token: rules and uses
The NEOM token is issued in a 1:1 ratio relative to documented losses (calculated via pre-exploit snapshot).
It can be traded through AMM pools for those in need of immediate liquidity or held to access future distributions from recovered funds and any external contributions.
Repayment priorities follow a waterfall logic, based on the availability of recovered assets (twitter.com/nemoprotocol). In fact, the market also prices the redemption time horizon.
Guidelines for Interested Users
Interested users can proceed according to the instructions provided in the official panel communicated by the Nemo channels. The typical flow includes:
- Verification of positions through pre-exploit snapshot.
- Automatic migration of residual assets.
- Claim the NEOM Debit token.
- Choice between holding NEOM awaiting redemption or selling it on DEX based on one’s risk profile.
Exit scenarios based on DEX liquidity
- Immediate sale: allows for immediate liquidity, although the price may reflect significant discounts.
- Hold: allows you to wait for recoveries and potential capital injections, with the possibility of an increase in redemption value.
- Hybrid approach: part of the tokens is sold for current needs, while the rest is held awaiting redemption.
Effects on the DeFi Ecosystem
The incident, which is part of a series of exploits in the DeFi sector, reignites the debate on deploy governance—with the adoption of multisig signatures—the need for continuous code reviews and incremental auditing.
The cooperation between security teams for cross-chain tracking and blocking flows through infrastructures like Wormhole and the Cross-Chain Transfer Protocol (CCTP), currently central to the coordinated response to exploits, is now at the forefront of discussions. Yet, the resilience of the ecosystem also depends on operational discipline over time.
Essential FAQ
When does the migration occur? The asset migration procedure was initiated at the beginning of September 2025 and continues with staggered releases until completion.
How is the 1:1 ratio calculated? The ratio is established based on a pre-exploit snapshot, which accurately sets the users’ positions before the attack.
What determines the speed of repayment? It depends on the amount of recovered funds and any capital injections, with official communications being updated in real-time.
Can I trade NEOM right away? Yes, through NEOM/USDC AMM pools on Sui DEXs, where the price is market-driven (twitter.com/nemoprotocol).
Final note: the outcome of the plan depends on the on-chain recovery rate and the stability of liquidity on DEX. Updates and operational parameters are constantly communicated through official channels to ensure continuous information flow.
[Some details regarding attacks involving other platforms (such as the case of the Yala stablecoin, which experienced a significant depegging) and the DeFi crisis of 2025 are still under verification and require confirmation from independent sources]
