Cryptocurrency Heist: Hacker Makes Most Crypto Tokens Over $ 610 Million Stolen, Poly Network Says

The hackers behind one of the biggest digital coin heists have now returned almost all of the $ 610 million (roughly Rs. 4,530 crore) – more than they stole, Poly Network, the platform cryptocurrency targeted earlier this week by the attack, said Thursday.

The platform, which was little known before Tuesday’s heist, called the hacker on Twitter a “white hat,” referring to ethical hackers who typically aim to expose cyber vulnerabilities upon return of funds.

Poly Network, which facilitates peer-to-peer token transactions, added that the tokens have been transferred to a multi-signature wallet controlled by both the platform and the hacker.

The only remaining tokens that have yet to be returned are the $ 33 million (roughly Rs. 245 crore) in stablecoins frozen earlier in the week by cryptocurrency firm Tether, Poly Network said. .

“The refund process is not yet complete. To ensure the safe recovery of user assets, we hope to maintain communication with Mr. White Hat and provide accurate information to the public,” Poly Network said on Twitter.

A person claiming to have carried out the hack said that Poly Network offered him a bounty of $ 500,000 (approximately Rs. 3.7 crore) to return the stolen assets and promised that he would not be responsible for the incident. according to digital messages shared on Twitter by Tom Robinson. , chief scientist and co-founder of Elliptic, a crypto tracking company.

Poly Network, which allows users to transfer or exchange tokens across different blockchains, said on Tuesday it had been hit by the cyberheist, urging perpetrators to return the stolen funds.

The as yet unidentified hacker (s) appear to have exploited a vulnerability in digital contracts used by Poly Network to move assets between different blockchains, according to blockchain investigative firm Chainalysis.

Hackers began returning the stolen coins on Wednesday, leading some Blockchain analysts to speculate that they might have found it too difficult to launder the stolen cryptocurrency on such a scale.

Later Wednesday, the hackers said in digital messages also shared by Elliptic that they carried out the attack “for fun” and wanted to “expose the vulnerability” before others could exploit it and that it was. “always” the plan to return the tokens. .

At $ 600 million (roughly Rs. 4,460 crore), however, the Poly Network theft far exceeded the record $ 474 million (roughly Rs. 3,520 crore) in criminal losses recorded by the industry as a whole. decentralized finance (DeFi) from January through July, according to crypto intelligence firm CipherTrace.

The theft illustrates the risks of the largely unregulated DeFi industry, crypto experts said. DeFi platforms allow users to transact, usually in cryptocurrency, without traditional gatekeepers such as banks or exchanges.

© Thomson Reuters 2021

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