Cryptocurrency platform loses $600 million in digital tokens after hacking attack

Poly Network, a decentralised finance platform (DeFi), proclaimed the hack by posting the intricate details of digital wallets on Twitter to which it said that the money was transferred, persuading people to blacklist tokens from those addresses.

On August, a cryptocurrency platform has lost around $600 million in digital tokens, as per the information of the heist on Wednesday, this proved to be one of the sector’s biggest hacking attacks.

Poly Network, a decentralised finance platform (DeFi), proclaimed the hack by posting the intricate details of digital wallets on Twitter to which it said that the money was transferred, persuading people to blacklist tokens from those addresses.

As per crypto trade publication The Block, the value of the tokens in the wallets mentioned by Poly was over $600 million at the time of the announcement.

The heist is supposedly one of the biggest ever in crypto markets in relation to the $530 million in stolen crypto from the Tokyo-based bitcoin exchange Coincheck in the year 2018.

Crypto exchange company Mt. Gox, from Tokyo, collapsed in 2014 after losing a whopping half a billion dollars in bitcoin.

“It is a massive hack…… as large as Mt. Gox,” averred Bobby Ong, co-founder of crypto analytics website CoinGecko, even though he noticed the fallout not hurting the large crypto prices.

“This project is finished in my opinion. (It is) going to take a lot to regain confidence,” Ong added.

Poly reiterated that “It was not immediately clear where the platform is based, or whether any law enforcement agency was investigating the heist.”

STOLEN TOKENS

Poly tweeted that it aimed to take legal action and requested the hackers to return the assets, a move analysts averred about how tough it is to recover stolen tokens.

“It is not like an ordinary bank heist where the money is stolen from the bank who remains the victim,” added Jake Moore, cybersecurity specialist at cybersecurity firm ESET and former head of digital forensics at Britain’s Dorset Police.

“Money stolen which is stored in digital ledgers is taken from individual accounts and this is what worries those choosing to store their money in these locations,” Moore said.

As per the report by crypto intelligence company CipherTrace, the stolen funds amounted to be much greater than the criminal losses registered by the entire DeFi sector from the period of January to July with a record of $474 million.

Advocates of DeFi said: “The technology will allow more people and businesses to access financial services. Yet it is mostly unregulated, with tech flaws and weaknesses in the code many platforms use leaving it vulnerable to hacks and heists.”

However, a message embedded in exchanges from one of the wallets governing the missing funds said: “I need a secured multisig wallet from you,” in an attempt to try and give back the loot.

“It’s already a legend to win so much fortune,” stated a follow-up message.

The chief technology officer at Tether also tweeted that “The company had frozen $33 million connected with the hack, and top management at large crypto exchanges responded to Poly on Twitter saying they would try to help.”

Source Business Standard
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