Nemo Protocol to compensate users after hack

The platform has presented a compensation plan: users will receive NEOM, and part of the investment will go to a redemption pool to support liquidity

Nemo Protocol launches debt token program for victims of $2,6 million exploit

15.09.2025 - 15:55

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2 min

Key points:

DeFi platform Nemo has announced a compensation plan through the issuance of NEOM debt tokens.
This month, the platform lost $2,6 million as a result of an exploit.
To compensate affected users, funds will be directed to support liquidity and investments in a redemption pool.

The Sui-based DeFi platform Nemo Protocol, which was recently hacked, has presented a compensation plan for affected users. The plan is based on a debt token model: victims will receive NEOM equivalent to their losses in US dollars. The team noted:

“While we would have preferred to reimburse everyone directly in USD, we do not have sufficient funds or capital raised to do so, which is why we adopted the debt token strategy as the most viable path forward.”

The attack took place on September 7 and resulted in the loss of $2,6 million from the market pool. According to PeckShield, the hacker exploited vulnerabilities added to the code by the developer and implemented without proper auditing.

Nemo stated that it aims to compensate all users for their basic losses, calculated based on a snapshot of the blockchain taken before the protocol was suspended after the incident.

Compensation strategy

The protocol provides for a three-stage recovery process:

Users will be given access to a special portal to transfer remaining assets from compromised pools to new, verified, multi-party managed contracts.
During the migration, they will receive NEOM tokens equivalent to their estimated losses.
Holders will have two options: exit through an automated market maker pool or keep their tokens and wait for funds to be recovered.

Nemo’s compensation model includes a plan to transfer all funds collected as a result of the exploit to a multilateral redemption pool for proportional claims by NEOM holders. The platform has stated that it also plans to allocate a portion of its strategic investments to the redemption pool to support liquidity.

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