Nemo Protocol launches debt token program 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, proposing to issue a debt token NEOM to compensate for user losses.

NEOM will be calculated based on the on-chain snapshot of users at the time of the event pause, corresponding to their dollar losses. Nemo stated that due to insufficient funds, it cannot directly compensate in full dollars, so it has adopted 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 through the AMM pool or hold while waiting for fund recovery. The team also plans to launch a NEOM/USDC liquidity pool on mainstream DEXs in Sui for users to exit instantly. Additionally, 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 NEOM burn progress 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 establish a white hat framework and vulnerability bounty mechanism.