The Federal Trade Commission (FTC) has reached a proposed settlement with Illusory Systems Inc. regarding the 2022 Nomad cross-chain bridge hack. The incident, which occurred due to a critical vulnerability introduced during a June 2022 code update, resulted in consumer losses exceeding $100 million. Under the settlement terms, Illusory Systems is prohibited from misrepresenting its security measures, must establish a formal information security management system, undergo independent security assessments every two years, and return any unrecovered funds to affected users. The agreement is now open for a 30-day public comment period.