Cryptocurrency Heist: Poly Network Rewards Hacker With $ 500,000 Bug Bounty

Poly Network, the cryptocurrency platform that lost $ 610 million (around Rs. 4,530 crore) in a hack earlier this week, confirmed on Friday that it offered the hacker (s) a “bug bounty”. “Of $ 500,000 (approximately Rs. 3.7 crores)”.

In a statement, he thanked the hacker – whom he dubbed a “white hat,” industry jargon for an ethical hacker who typically aims to expose cyber vulnerabilities – who had returned the bulk of the funds for ” help us improve the security of Poly Network “.

The network also said it hoped that “Mr. White Hat” would contribute to the continued development of the blockchain industry by accepting the $ 500,000 (around Rs. 3.7 crore) reward, which he had offered in the framework of negotiations around the return of digital parts.

The statement did not specify the form in which she would pay the $ 500,000 (approximately Rs. 3.7 crore). He said the hacker responded to the offer but did not say whether it was accepted.

Digital messages shared on Twitter by Tom Robinson, chief scientist and co-founder of crypto-tracking company Elliptic on Thursday, showed that a person claiming to have carried out the hack said that Poly Network offered him the bounty for return the stolen assets.

A lesser-known name in the crypto world, Poly Network is a decentralized finance (DeFi) platform that facilitates peer-to-peer transactions by allowing users to transfer or exchange tokens between different blockchains.

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 analytics firm Chainalysis.

According to Friday’s statement, the hacker returned $ 340 million (roughly Rs.2,520 crore) in assets and transferred most of the rest to a digital wallet jointly controlled by them and Poly Network.

The rest, held in place, have been frozen by the cryptocurrency firm behind the stablecoin.

“After communicating with Mr. White Hat, we also came to a more complete understanding of how the situation unfolded as well as Mr. White Hat’s original intent,” the statement said, without giving further. details.

Poly Network announced the hack on Tuesday, but the next day the hackers began returning the digital coins they had taken.

The hackers said in digital messages shared by Elliptic that they carried out the attack for fun and that there were still plans to return the tokens.

Some blockchain analysts have speculated, but they might have found it too difficult to launder stolen cryptocurrency on such a scale.

© Thomson Reuters 2021


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