Over 175 different tokens with valuations exceeding $10,000 were stolen as part of a massive hack against the U.S.-based crypto exchange Poloniex on Friday, according to on-chain data. Since earlier today, estimates of the funds stolen in the hack have expanded to $125 million.
What Hackers Took From Poloniex
According to an X post from Nansen, some of the largest Ethereum-based outflows from Poloniex in the past 24 hours have included $11 million in Tether USD (USDT), and $10.4 million in Ether (ETH), and $5 million worth of USD Coin (USDC). The exchange also lost substantial value in memecoins, including $6 million worth of Dogelon Mars (ELON) and $4.7 million in Shiba Inu (SHIB). Other losses included $3.1 million in Open Exchange Token (OX) and $2.5 million in Golem (GLM).
Yet that’s just the half of it: according to blockchain security firm PeckShield, while Poloniex lost $56 million on the Ethereum blockchain, another $48 million was lost on Tron, with 501 Bitcoin (BTC) worth $18 million lost on the Bitcoin network. Though $7.5 million worth of Tron’s losses were in dollar-pegged stablecoins, most losses included another 380 BTC, plus another 68.2 Wrapped Bitcoin (WBTC).
Justin Sun – the founder of Tron – acquired Poloniex in 2019. On Friday, he confirmed that the exchange’s losses are “within manageable limits” and can be covered using the company’s operating revenue.
“The team has restored Poloniex’s systems, preserved relevant evidence, and in the coming days, we will work diligently to gradually resume deposits and withdrawals on Poloniex, ensuring 100% security,” Sun stated.
Identifying the Hacker
Sun and Poloniex have also confirmed that some of the hacker’s stolen assets have been frozen. Though the company intends to involve law enforcement to track down the hacker, they’ve also offered the thief a 5% whitehat bonus to return 95% of all funds to the exchange’s addresses within seven days.
Binance CEO Changpeng Zhao has offered to help Poloniex by freezing stolen funds that may land on the exchange. According to PeckShield, 25,500 stolen OMG tokens have already been sent to Binance.
CertiK, another blockchain security firm, claims that ~57% of crypto losses to hacks in 2023 have come from private key compromises.
Hot Take: Recovering from Crypto Exchange Hacks
The recent hack against Poloniex has resulted in significant losses for both the exchange and its users. However, it’s reassuring that efforts are being made to restore systems and recover stolen assets. This incident highlights the ongoing need for robust security measures within the cryptocurrency industry. As investors and traders, it’s crucial to remain vigilant and stay informed about developments related to such security breaches. Additionally, collaborations between exchanges and blockchain security firms demonstrate a collective effort to combat cybercrime within the crypto space.
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