In a Nutshell
- Alexander Gurevich, a suspected crypto hacker on the run, was captured at Israel's Ben-Gurion Airport before boarding a flight to Moscow.
- Gurevich is implicated in the $190 million loot of cross-chain bridge Nomad, the first to exploit a glitch in its smart contract code.
- The initial breach quickly snowballed into a "free-for-all" as over a hundred hackers replicated the attack and dipped into Nomad's pockets.
- The U.S. authorities have charged Gurevich with eight federal offenses, including money laundering, wire fraud, and computer intrusion.
- Despite residing in Israel at the time of the alleged crimes, Gurevich would not serve any U.S. sentence inside the country.
- The Nomad bridge ultimately reopened in late 2022, still reeling from the devastating blow and struggling to recover the stolen goods.
Scene Unveiled
U.S. Wanted Suspect Arrested by Israel over $190 Million Nomad Crypto Bridge Heist: Information claims
It was last Thursday when Alexander Gurevich, a notorious figure linked to the $190 million heist of cross-chain bridge Nomad, was taken into custody at Israel's Ben-Gurion Airport. His intended destination was Moscow, and Israeli authorities nabbed him just as he prepared to board the plane.
An alleged accomplice of Gurevich, the hacker had previously acquired Israeli and Russian citizenship and legally changed his name to Alexander Block. Recently, U.S. prosecutors branded him as the culprit behind a 2022 exploit that swindled Nomad of most of its assets.
The Nomad Smash 'n' Grab
In August 2022, attackers took advantage of a loophole in Nomad's bridge system, which allowed users to modify a single transaction and claim funds without approval. Gurevich's malicious transaction set off a chaotic chain reaction, inspiring hundreds of onlookers to follow suit. By altering token amounts and recipient addresses, the digital pirates bagged around $88 million in a matter of minutes.
Coinbase's blockchain investigation revealed that roughly 90% of the involved addresses were copycats, replicating the initial move with minimal alterations. By the time Nomad triggered a system freeze, less than $651 remained in its smart contract wallet. Some of the early wallets implicated in the hijack were traced back to the coin mixer, Tornado Cash.
Shady Business and a Missed Opportunity
Three days after the smash and grab, Gurevich allegedly reached out to Nomad's CTO, James Prestwich, under a fake identity. The hacker expressed regret for the accidental intrusion, returned around $162,000 worth of tokens, and demanded a staggering $500,000 reward. When Nomad countered with a 10% bounty, the conversation came to a close.
U.S. authorities announced an indictment against Gurevich a year later in the Northern District of California, charging him with eight federal offenses. Since Gurevich was living outside of Israel at the time of the alleged crimes, he would serve any resulting U.S. sentence elsewhere.
The Wounded and Resilient Nomad
The exploit left deep scars on Nomad, as it trudged to pick up the pieces and relaunch its bridge in late 2022. The company offered a 10% bounty to anyone returning the stolen assets and managed to recover around $37 million. However, the majority of the funds vanished across hundreds of addresses, some connected to known money laundering tools.
- Alexander Gurevich, allegedly involved in the $190 million heist of cross-chain bridge Nomad, was captured at Israel's Ben-Gurion Airport en route to Moscow.
- Gurevich, also known as Alexander Block, is the hacker U.S. prosecutors accuse of masterminding the 2022 exploit that drained Nomad of most of its assets.
- The Nomad heist saw attackers exploiting a loophole in the bridge system, leading to a chain reaction of transactions and the theft of around $88 million in crypto.
- Coinbase's blockchain investigation revealed that over 90% of the involved addresses replicated the initial move, with some implicated wallets linked to the coin mixer, Tornado Cash.
- Three days after the heist, Gurevich allegedly contacted Nomad's CTO, posing as another individual, offering to return some tokens for a substantial reward.
- Nomad initially countered with a 10% bounty, but the conversation ended without any agreement, and the stolen funds remained at large.
- In 2023, Gurevich was indicted in the Northern District of California for eight federal offenses, including money laundering, wire fraud, and computer intrusion.
- Despite residing in Israel at the time of the alleged crimes, Gurevich would not serve any U.S. sentence inside the country. General-news and crime-and-justice outlets closely followed the story, highlighting the complexities of cybersecurity law in the era of cryptocurrency and smart contracts.
