NEAR Intents temporarily stopped its services after discovering a security flaw that caused an estimated $3.8 million loss.
The incident comes during a time that the NEAR ecosystem is seeing rapid growth. The price of NEAR fell more than 9% as traders looked at what the disruption could mean for its recent rally.
NEAR Intents promises full compensation
NEAR Intents said the problem was from a bug involving its Omni deposit-and-withdrawal system and an Intents smart contract.
This means that the affected system helps users move and exchange assets across different blockchains. It is a service built within the NEAR ecosystem, not the NEAR blockchain itself.
The team said it had patched the smart-contract vulnerability and that it would compensate for the whole $3.8 million loss.
NEAR Intents and near.com were expected to resume operations shortly after the announcement. But deposits and withdrawals involving some networks will remain unavailable for about 12 hours more.
The affected networks included BSC, Polygon, TON, Optimism, Avalanche, Stellar, Monad, LayerX, Adi, Scroll and Plasma.
Users holding assets from those networks could still exchange them after NEAR Intents returned, according to the update.
The incident has also been reported to law enforcement. NEAR Intents said it was working with security firms and blockchain-tracking companies to follow the funds and attempt a recovery.
NEAR crypto rally faces its first major test
The timing is important because more money has recently entered applications on NEAR.
The network’s total value locked increased from about $90 million in August to more than $260 million in late September. It has since dropped to $235 million, but the chart does not show or confirm that the recent incident caused the decline.
NEAR’s price had also enjoyed a sharp run, rising from below the $2 price level in late August to around $5.50.
Due to the price increase it saw, there was room for nervous traders to take profits when the news of the loss broke.
NEAR fell from about $5.34 to $4.84, touching the $4.75 price area for a short while. Despite the price drop, it still remains well above the levels that supported its wider recovery.
The area between $4.50 and $4.60 is now a test area. If it’s able to hold there, the broader rise will remain intact, while a return above $5 could help settle immediate concerns.
Final Summary
- NEAR Intents reported about a $3.8 million loss and promised to compensate all affected funds.
- NEAR dropped 9%, but its broader recovery remains intact while the price holds above the $4.50 price area.
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