Poloniex Hacker Identified
Poloniex, owned by Justin Sun, has identified the culprit behind the $120 million hack on November 10th. The exchange is offering a $10 million reward to the hacker if the stolen funds are returned by November 25th. Sun confirmed the involvement of law enforcement from China, the US, and Russia, as well as ongoing blockchain messages warning the hacker of legal action.
Deadline To Return Funds
The hacker has a deadline of seven days to return the funds and receive the $10 million white hat bug bounty. If the hacker fails to comply, Poloniex has vowed to take legal action to the full extent.
The hack resulted from a compromised hot wallet and resulted in the theft of various digital assets, including XRP, USDT, ETH, WBTC, and 35 different TRC-20 tokens. Poloniex has reassured users that their losses will be covered and has temporarily suspended withdrawals and deposits. The exchange is close to restoring full functionality and completing its audit before resuming regular operations.
A Growing Headache
This is the second-largest crypto hack of 2023, following the Euler Finance hack, in which funds were returned within a month. Hacks on cryptocurrency exchanges have been rising, with incidents at HTX, Gdac, and Deribit. Following the Poloniex hack, the hacker’s purchase of $20 million worth of TRX caused a 25% price increase. Analysis by Nansen discovered that the Poloniex wallet held only 175 tokens worth around $10,000 following the hack.
Hot Take: Poloniex Takes Decisive Action Against Hacker
The identification of the hacker and the $10 million reward deadline offer by Poloniex is a bold move that demonstrates the exchange’s determination to fight back and ensure the return of the stolen funds. This proactive response sets a precedent for other exchanges and may serve as a warning to potential hackers in the future.
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