Nexera, a blockchain infrastructure protocol, has paused its token contract following a significant hack that resulted in the theft of approximately $1.8 million worth of NXRA tokens.

The hack was reported on August 7 by Cyvers, which revealed that a suspicious transaction allowed the attacker to take control of Nexera's proxy contract and withdraw all NXRA tokens.

The attacker executed a 'withdraw admin' function to steal 32.5 million NXRA tokens, valued at around $1.23 million, along with $555,000 in USDT stablecoin.

Following the theft, the hacker has been actively selling the stolen NXRA tokens for Ethereum and transferring funds to the Binance Smart Chain, possibly using cryptocurrency mixers to obscure the funds' origins.

Blockchain investigator ZachXBT has linked the attacker to previous incidents involving compromised private keys, including hacks on various platforms such as SpaceCatch and Concentric Finance.

Unlike previous incidents, where stolen funds were returned, the Nexera attacker has shown malicious intent and is actively laundering the stolen tokens.

This incident underscores the urgent need for decentralized finance (DeFi) protocols to enhance security measures, including rigorous audits and advanced security features.

In response to the exploit, Nexera has advised all token holders to stop trading until further notice and is currently investigating the incident.

The value of the NXRA token has dropped by 40% following the attack, severely impacting investor confidence.

This incident marks the second attack on Nexera within a short period, following a previous breach in April involving the theft of 100 million ALBT tokens.

As of now, the NXRA token is trading at $0.036, reflecting the ongoing fallout from this security breach.