New Free DAO (NFD) Token Plummets 99% After $1.25 Million Flash Loan Attack
On September 8, 2025, the DeFi project New Free DAO (NFD) suffered a devastating flash loan attack, resulting in a loss of over $1.25 million and a catastrophic 99% drop in the NFD token price. Blockchain security firms like PeckShield and Certik quickly reported on the exploit.
This attack highlights the inherent risks within the decentralized finance (DeFi) space, where flash loans allow users to borrow significant amounts of assets without upfront collateral. This feature, while innovative, can be exploited by malicious actors.
Just a day after a similar attack on Avalanche, the New Free DAO (NFD) DeFi platform became the latest victim. According to reports, the attacker was able to drain approximately 4481 WBNB (worth approximately $1.25 million) from New Free DAO, causing the token to plummet 99%. This New Free DAO hack underscores the importance of robust security audits and preventative measures in DeFi protocols.
The NFD token crash serves as a stark reminder of the volatility and potential vulnerabilities within the DeFi ecosystem. While flash loan attacks are becoming increasingly common, projects must prioritize security to protect users' funds and maintain trust in the decentralized finance space.
Stay informed about the latest developments in DeFi security and learn how to protect yourself from similar exploits. We will continue to update this page with more information as it becomes available.