Crypto Exchange Poloniex’s Wallet Breached, Resulting in $100M Loss
If you’re a user of the digital asset exchange Poloniex, you might want to pay attention to recent news about a significant security incident. The exchange’s crypto wallet experienced a breach, leading to suspicious outflows of around $100 million in crypto assets. The breach was detected through blockchain explorer Etherscan, which revealed that millions of crypto assets were transferred from the Poloniex 4 account on November 10. Initially, it was estimated that $60 million was lost, but further investigation showed the actual amount was over $100 million.
According to blockchain security firm CertiK, the breach likely occurred due to a “private key compromise,” and the stolen funds have been transferred to four externally owned accounts, with some being converted into Ether (ETH).
Exchange Response and Repercussions
While Poloniex has not issued an official statement regarding the incident, Justin Sun, who acquired the exchange in 2019, has assured users that they will be fully reimbursed for their losses. He mentioned that the exchange maintains a healthy financial position and is working on collaborations with other exchanges to recover the lost funds. Sun also offered a 5% white-hat bounty to the hacker and stated that if the funds are returned within seven days, they would not involve law enforcement authorities.
Market Impact
The incident had an unexpected impact on Tron (TRX), another cryptocurrency project affiliated with Sun. Despite the negative news surrounding Poloniex, TRX saw a 20% increase in price on CoinGecko following the hack, rising from $0.09 to $0.11 on the same day.
Hot Take: Cryptocurrency Community Stunned by Poloniex Breach
The crypto community is reeling from news of Poloniex’s security breach and the resulting loss of over $100 million in user assets. This incident serves as a reminder of the persistent security threats faced by digital asset exchanges and highlights the importance of robust security measures and proactive response strategies in safeguarding user funds.
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