Poloniex Exchange Hit by $100M Hack, Proposes 5% Bounty for Collaborative Efforts

Jimmy Aki
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Popular cryptocurrency exchange Poloniex, has suffered a huge loss of over $100 million in a recent blockchain breach. Security and data analysts are tracing the movement of hacked funds as more information is unveiled.

Poloniex Exploits Caused By Private Key Compromise

Poloniex appears to be the latest digital asset trading platform to suffer exploits, which have caused panic in global crypto and blockchain communities.

On November 10, PeckShield.Inc., a blockchain security and analytical platform, alerted the Poloniex exchange and Justin Sun, the founder of Tron asset, about an ongoing chain hack.

According to the alert, which contained on-chain records by Etherscan, the unknown hacker emptied investors’ accounts on the exchange wallets.

Responding in under 11 minutes, the crypto exchange’s customer support team confirmed the security firm’s findings. As a precaution, the support team promptly shut down the platform for safety maintenance and promised a timely update on unfolding events.

CertiK, another reputable on-chain security firm, provided additional insights into the exploit. The platform reported tracking suspicious fund movements from the exchange, initially estimating $31 million in transferred funds.

However, it was later discovered that the attackers had made off with over $100 million, including ETH, TRON, and BTC, valued at $33 million, $48.7 million, and $18.6 million, respectively.

Sun also confirmed the exchange attack through an X (formerly Twitter) announcement, stating that an active investigation is underway.

He also added that the exchange would offer a 5% “white hat bounty” before contacting law enforcement to recover some assets in the shortest possible time.

“We are offering a 5% white hat bounty to the Poloniex hacker. Please return the funds to the following ETH/TRX/BTC wallets. We will give you seven days to consider this offer before we engage law enforcement.”

Meanwhile, Changpeng Zhao, the founder of Binance, the world’s largest exchange in trading volume, promptly expressed support for Poloniex and Sun.

Zhao announced that Binance is ready to assist in investigating and recovering stolen funds if traced to a Binance wallet address.

The Rising Wave of Blockchain Exploits

The cryptocurrency industry is grappling with a worrisome surge in exchange exploits, with security breaches becoming more prevalent.

On September 12, CoinEx Global, a digital asset exchange headquartered in Hong Kong, experienced a security breach similar to Poloniex’s. This exploit resulted in an approximate loss of $43 million in various cryptocurrencies.

Notable decentralized finance protocols also faced security challenges, including Level Finance, Ovix, Merlin, and Hundred Finance.

These security breaches underscore the vulnerability of decentralized systems, posing a threat to the integrity of blockchain technologies.

The recurring nature of these events impacts the overall confidence in these platforms and the broader crypto and DeFi landscape.

To address this, financial regulators must prioritize implementing robust security measures to restore and maintain trust. This is crucial for the sustained growth and adoption of blockchain solutions in the long run.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.