Home Latest Poly Network hacker returns $258M, conducts AMA on how it went down

Poly Network hacker returns $258M, conducts AMA on how it went down

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The hacker or hackers behind one of the largest cryptocurrency heists in history have returned more than a third of the stolen digital coins to the Poly Network.

Poly Network, a decentralized financial platform that makes peer-to-peer transactions easier, announced the hack on Twitter; posting details of the digital wallets to which the tokens were sent.

According to blockchain analysts; at the time of the announcement, the value of coins in wallets was just over $ 600 million.

But nevertheless, the Poly Network team turned out to be more agile and managed to mark all the funds on the wallets so that the hacker could not use them.

The hacker made his move and tried to pour funds into Curve vaults while Tether blacklisted the address. The hacker was prompted by a third-party etusiast, so they managed to pour $ 92 million. For this, the hacker sent the prompting 13.37 ETH, that is, LEET – “elite”.

Poly Network later urged hackers to return the stolen funds to several of its digital addresses; saying it plans to sue.

The next day, the attacker actually started returning the stolen tokens.

About $ 258 million has now been returned, according to public blockchain records.

Decentralized finance hacks

Poly Network did not provide details of the robbery or refund. It is not clear where the platform is based and whether the robbery was investigated by law enforcement agencies.

The size of the theft was comparable to the $ 530 million in digital coins stolen from Tokyo’s Coincheck in 2018. The Gox exchange, also based in Tokyo, crashed in 2014 after losing half a billion dollars in Bitcoin.

The latest attack comes as losses from theft, hacking, and fraud associated with Decentralized Finance (DeFi) have reached all-time highs; raising both the risk of investing in the sector and the desire of regulators to get rid of it.

The DeFi sector is booming

DeFi platforms allow financial transactions, usually in cryptocurrency, without traditional intermediaries such as banks or exchanges. The sector has thrived over the past year, with platforms now processing over $ 80 billion worth of digital coins.

Poly Network allows users to exchange tokens between different blockchains.

The extraction of some tokens highlights the difficulty of laundering large amounts of stolen cryptocurrency.

This is generating so much public attention that exchanges will be monitoring customer deposits associated with this theft. This demonstrates that even if you can steal crypto assets, laundering and cashing them out is extremely difficult due to the transparency of the blockchain and the widespread use of blockchain analytics by financial institutions.

The stolen funds exceed the criminal losses recorded by the entire DeFi sector from January to July; which totaled a record $ 474 million, according to a report by crypto intelligence company CipherTrace.

The Tether chief tweeted that the company had frozen $ 33 million related to the hack, and top management at major cryptocurrency exchanges responded to Poly Network, saying they would try to help as well.

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