An Attempted $4 Billion Attack on PolyNetwork: Limited Liquidity and Security Precautions
An attempted attack on PolyNetwork resulted in the issuance of billions of dollars worth of malicious tokens. The attackers exploited a smart contract function in the cross-chain protocol’s bridge tool, allowing them to manipulate the system and issue tokens that did not actually exist. However, the attackers faced difficulties monetizing their massive token stash due to low liquidity and security precautions.
Key Points:
- Attackers minted billions of binance usd (BUSD) and bnb (BNB) on the Metis blockchain, trillions of shiba inu (SHIB) on the Heco blockchain, and millions of other tokens on various networks.
- Despite holding over $42 billion worth of tokens on paper, the attackers encountered a lack of liquidity, preventing them from selling most of the tokens.
- Some illicitly-minted tokens, such as SHIB, were exchanged for ether (ETH) on the market.
- The PolyNetwork bridge developers locked the illicitly-issued METIS tokens, further impeding the attackers’ ability to monetize their gains.
- Previous attacks on PolyNetwork highlight the vulnerability of bridges in the crypto ecosystem, as they facilitate the transfer of large sums of tokens but are often targeted by hackers.
Hot Take: The attempted attack on PolyNetwork showcases the importance of liquidity and security measures in the crypto space. While the attackers managed to issue billions in tokens, their inability to convert them into real value highlights the limitations they faced. This incident serves as a reminder for the crypto community to prioritize robust security protocols and ensure sufficient liquidity to prevent similar attacks in the future.
Continue reading on Bitcoin.com
Cora Skindell is a standout figure in the world of cryptocurrency analysis, research, and editorial expertise. As a seasoned crypto analyst and researcher, Cora’s insights delve deep into the complexities of digital assets, resonating with a diverse audience. Her ability to dissect intricate crypto concepts is complemented by her adept editorial skills, enabling her to distill complex information into easily understandable content.