Blockchain company Nomad to repay users under FTC deal after $186M cyberattack

In proposing a settlement agreement, the Federal Trade Commission (FTC) says that Illusory Systems must repay users funds lost in a 2022 cyberattack.

Illusory Systems, which trades as Nomad, allegedly misled users about the security of its cryptocurrency bridge, which was compromised in 2022 in an attack that led to $186 million worth of funds being stolen.

The FTC alleged that Nomad pushed an update in June 2022 containing "inadequately tested code" that, in turn, introduced a "significant vulnerability" that was exploited around a month later.

The FTC acknowledged that some of these funds were recovered, but Nomad's customers ultimately lost out on approximately $100 million.

The FTC's proposed settlement agreement, published this week, would require Nomad to repay around $37.5 million to users who remain out of pocket within a year of the agreement being signed, or 30 days after the end of any litigation related ...