Illusory Systems settles with FTC over 2022 cryptocurrency hack

The FTC reached a settlement with Illusory Systems (Nomad) after a June 2022 exploit of the company’s Token Bridge smart contracts allowed attackers to steal $186 million in cryptocurrency; the agreement requires the company to implement a comprehensive cybersecurity plan, cooperate with third-party assessors, and return recovered funds. The report highlights that the company deployed inadequately tested code, lacked sufficient security staffing, automated fraud monitoring, vulnerability reporting processes, and safeguards such as circuit breakers or a kill switch, and that these deficiencies contributed to the large-scale theft and delayed response.