Nemo Protocol launches debt token plan to compensate $2.6 million attack victims

ChainCatcher News, according to the official blog, the Sui ecosystem yield trading platform Nemo Protocol, which was recently attacked, has launched a user compensation plan and intends to issue a debt token called NEOM to make up for user losses.

NEOM will be calculated based on an on-chain snapshot of users at the time the incident was paused, corresponding to their USD losses. Nemo stated that due to insufficient funds, it is unable to compensate users in full directly in USD, so it is adopting the debt token strategy as the most feasible solution. Users will receive NEOM tokens during the process of migrating assets to the new contract and can choose to exit via the AMM pool or hold and wait for fund recovery. The team also plans to launch a NEOM/USDC liquidity pool on major Sui DEXs to allow users to exit instantly. In addition, any recovered stolen funds, external financing, or strategic investments will be injected into the redemption pool, and NEOM holders can claim proportionally. The platform will also launch a dedicated website to disclose the progress of NEOM burning in real time to ensure transparency. Previously, the attacker transferred $2.6 million from Sui to Ethereum via Wormhole CCTP. Nemo is working with security teams to track the funds and has established a white hat framework and bug bounty mechanism.