NEAR Blocked $50 Million of Bitget’s Stolen Money, Then Lost $3.8 Million of Its Own Two Days Later. Is NEAR Still Safe to Hold After a 182% Monthly Surge?
NEAR Intents stopped tens of millions in stolen Bitget funds, then suffered its own breach two days later, all while the token was riding one of crypto's most explosive monthly rallies. Whether that rally survives the fallout depends on what…
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NEAR Protocol (CRYPTO:NEAR) has been in the spotlight recently, battling stolen funds and security issues. After blocking over $50 million linked to the Bitget hack, NEAR lost $3.8 million in the NEAR Intents exploit on October 1. Despite these challenges, NEAR gained an impressive 182% over the past month. But is it still a safe investment? (FLAG: “recently” and “over the past month” are relative time; the 182% runs to October 1)
NEAR Intents Blocked $50 Million From Bitget’s Hackers but Froze Only $503,000
On September 29, NEAR Intents, the platform’s cross-chain swap service, announced that it had stopped more than $50 million in transfers from hackers who had stolen from the cryptocurrency exchange Bitget. The theft, totaling $387.5 million on September 24, led hackers to attempt swaps through NEAR Intents.
SHIELD, the security system designed to protect the service, blocked most of these attempts. However, approximately $503,000 was frozen mid-swap, and about $166,000 was successfully transferred out.
While NEAR Intents managed to turn away most of the stolen funds, the hackers redirected their efforts elsewhere, using tools like Zcash’s privacy pool to obscure their trail.
The NEAR Intents Exploit Cost $3.8 Million, and the Hacker Returned It Within a Day
Just two days later, on October 1, NEAR Intents faced its own internal security challenge, losing $3.8 million. The vulnerability stemmed from a bug in the smart contract that manages deposits and withdrawals on the cross-chain bridge.
These bridges are often targeted because of their large reserves of locked tokens and the complexity of coordinating across multiple blockchains. A small error can allow attackers to release tokens that were never deposited.
Fortunately, the exploit’s impact was contained. Illia Polosukhin, a co-founder of NEAR, stated that the loss was limited to Tether dollar tokens on the BNB Smart Chain. The SHIELD system detected the suspicious activity and paused operations across 11 networks. NEAR Intents also committed to compensating affected users, and the NEAR blockchain and its main token remained secure. Remarkably, within less than a day, the hacker returned the entire $3.8 million.
NEAR’s 182% Month Left Its Price Exposed to Bad Headlines
Despite the recent turmoil, NEAR holders are still ahead. As of October 1, NEAR had increased by 16% for the week, 211% over the past 60 days, and 160% over the last 90 days. Nonetheless, the 9.1% drop to $4.84 on October 1 reflects the volatility often seen in rapidly rising assets, especially amid negative news. Interest in NEAR surged in September, leading some traders to sell at the first sign of trouble.
On the same day, other cryptocurrencies like Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), XRP (CRYPTO:XRP), and Solana (CRYPTO:SOL) saw mild gains, suggesting that the shift in interest was more targeted at NEAR.
Currently, NEAR trades at $4.69 as of October 3, which is about 77% lower than its peak of $20.44 in January 2022. This significant decrease means that investors who bought near that peak may still be sitting on losses, potentially prompting them to sell if prices start to rise again.
Is NEAR Still Safe to Hold After the NEAR Intents Exploit?
In conclusion, the recent exploit involving NEAR Intents no longer poses a direct threat to NEAR holders. The incident was contained and resolved quickly, but the key concern remains the potential for a price drop following such a remarkable surge. Investors who entered the market during this rally may sell quickly on any negative news, leading to further price declines.
If NEAR’s price surpasses $4.84 again, it may indicate buyers are reassured despite the recent exploit. However, should the price continue to drop, it could signal that traders are taking profits from the recent highs.
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Sam Daodu is a crypto analyst who's spent nearly a decade making blockchain understandable—no easy task when most whitepapers read like fever dreams. He writes for 24/7 Wall St., covering Bitcoin, altcoins, and crypto market analysis for investors. Before crypto, he was a tech writer (back when explaining "the cloud" was peak innovation). Since 2018, he's written for CoinTelegraph, Yahoo Finance, The Block, Cryptonews, Zypto, Rain, and more—basically anywhere people want crypto news without the headache. Sam runs MacLabs Marketing, a content agency for crypto brands tired of sounding like AI wrote their website. He also publishes free crypto education on his site for Web3 enthusiasts who think "gas fees" is a typo. When he's not writing or staring at charts, Sam's either: - Watching anime (currently convinced One Piece has better tokenomics than most altcoins) - At the gym sculpting himself into a Greek god - Listening to the music your mum warned you only bad boys listen to Connect: LinkedIn | Email | MacLabs Marketing
