The Poly Network Falls Victim to Another Hack, Impacting 57 Crypto Assets
The Poly Network has been hacked once again, with hackers exploiting a smart contract function on the cross-chain bridge protocol. The attack resulted in billions of tokens being issued by the hacker, impacting 57 crypto assets based on ten blockchains. While the exact amount stolen is unclear, at least $5 million worth of crypto has been transferred by the attacker. The Poly Network team is working with centralized exchanges and law enforcement agencies to address the issue.
Poly Network Hack Breakdown: How the Exploit Occurred
The hack on Poly Network was possible due to a smart contract vulnerability that allowed the hackers to create a malicious parameter. This parameter bypassed the verification process and enabled the issuance of tokens from Poly Network’s Ethereum pool to the hacker’s address on other chains. The same procedure was repeated on other chains, resulting in a significant accumulation of tokens. At one point, the hacker’s wallet held over $42 billion worth of tokens, but only a fraction could be converted and stolen.
The Weaknesses in Poly Network’s Protocol and Slow Response
The latest hack has revealed weaknesses in Poly Network’s multi-sig arrangement, which had a simple 3 of 4 multi-signature setup for over two years. The attack was not complex, and Poly Network’s slow response resulted in a $5.5 million loss of stolen crypto. However, the lack of liquidity in most of the tokens prevented further significant losses.
Binance and Polygon Reassure Users
Binance CEO Changpeng Zhao reassured users that the hack does not impact Binance and that it does not support deposits from the Poly Network. Polygon’s Mudit Gupta emphasized that Poly Network has nothing to do with Polygon and called for a change in the industry’s approach to security.
The Poly Network’s Previous Hack and Controversial Resolution
This is the second major hack suffered by the Poly Network. In a previous hack in August 2021, attackers drained $600 million from the protocol. However, the stolen funds were later returned by the hacker, who claimed the attack was for fun. The Poly Network offered the hacker a job as Chief Security Advisor and chose not to press charges.
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