Poly Network Breach Results in $600 Million Loss

  • By Steven
  • Published: Aug 11, 2022
  • Last Updated: Aug 11, 2022

Hackers plucked a tidy $600 million worth of cryptocurrency out of Poly Network accounts. Poly Network is a popular DeFi (decentralized finance) platform. However, there is a silver lining to this story. Most of the stolen money was returned to the platform within two days.

How was the Money Stolen?

The cryptocurrency was stolen from the accounts through a weakness within a smart contract. The digital miscreants took advantage of a susceptibility within the smart contract used to move tokens from one blockchain to the next. It appears as though the thieves overrode instructions about contracts for the blockchains to send funds to digital wallet addresses, including digital spaces for tokens. The tokens were subsequently tracked and published by the platform. In total, the hackers stole a dozen variants of crypto, including the ever-popular bitcoin and Ethereum.

It must be noted that an individual who claims responsibility for the attack insists they identified an exploitable bug though the hacker did not identify the specific bug in question. The hacker insists the attack was made to reveal the susceptibility, preventing a potentially devastating attack. The digital thief also insists the heist was pulled off using an IP address and email address that could not be tracked by Poly Network or law enforcement.

Digital security specialists who performed a deep dive into the attack insist the thief used the cryptocurrency referred to as monero as his or her beginning source of funds to spur the attack. The movement of funds combined with fingerprint information reveals the cyber attack was planned well ahead of time.

Why was the Stolen Crypto Returned?

The hacker returned the stolen crypto, except for a small amount, likely in an attempt to avoid extensive scrutiny from law enforcement. The reality of the situation is that the criminal likely found it difficult to launder the stolen crypto, gave up on the plan, and returned it to Poly Network. However, the mere fact that such attacks occur frequently is a testament to the importance of updating digital security protections.

How did Poly Network Respond to the Hack?

Poly Network took to Twitter to respond to the incident. The company rattled off several tweets apologizing for the attack. The organization's representatives also requested that the crypto miners of the compromised blockchain and affected cryptocurrency exchanges block interactions stemming from the addresses where any stolen crypto wound up. This proactive response to the attack ultimately made it that much more difficult for the attacker to launder the stolen crypto.

The blockchain is transparent, meaning third parties can view the transactions of others that occur on the digital ledger even if they don't have any financial interest in those transactions. As a result, attempts to launder stolen cryptocurrency, such as that taken from Poly Network as detailed above, are relatively easy to identify. Though hackers who steal crypto could go to the extent of slowly laundering the funds over years or even decades, doing so would require a significant amount of effort and raise suspicion from fellow blockchain enthusiasts as well as law enforcement.

About the Author
IDStrong Logo

Related Articles

Instagram Vulnerability Allowed Hackers Access to Control Your Phone

Security experts Check Point Research discovered a critical vulnerability while examining Instagra ... Read More

Alien Malware Infects More than 226 Mobile Apps and Steals Bank Data

As reported on September 24, 2020, by ZDNet and ThreatPost, a new strain of malware named “A ... Read More

Universal Health Systems Hit by Ransomware Attack

Universal Health Systems (UHS), a Fortune 500 company owning more than 400 hospitals across the co ... Read More

Exchange Server Bug Exposes a Big Risk to Hackers

Months after Microsoft released a patch to fix a serious flaw in MS Exchange Server, more than 61% ... Read More

Clients’ Bank Data Exposed in Blackbaud Ransomware Attack

Blackbaud software was victim to a ransomware attack last May, and new information suggests that c ... Read More

Latest Articles

Snapchat Scams and How to Avoid Them

Snapchat Scams and How to Avoid Them

Snapchat is a mobile-based social media platform owned by Snap Inc. ; it is a global platform, hosting over 734.8 million users, the majority of which are Gen Z. The platform began as a resource for sharing pictures between friends but has evolved to include options for creator content, group conversations, and the sharing of media.

How to Recognize and Avoid Publishers Clearing House Scams

How to Recognize and Avoid Publishers Clearing House Scams

The Publishers Clearing House (PCH) appeared in 1967, promoting magazine subscriptions, merchandise, time-share vacations, and their famous cash prize sweepstakes.

What is a Time Theft and How to Prevent It

What is a Time Theft and How to Prevent It

Time theft happens when employees dishonestly use their paid work hours for personal activities or tasks unrelated to work. Time fraud significantly impacts an organization's productivity, business strategy, finances, and employee morale.

Featured Articles

How to Buy a House with Bad Credit

How to Buy a House with Bad Credit

Buying your own home is the American Dream, but it might seem out of reach to those with bad credit. However, the good news is, if your credit is less than perfect, you do still have options and in most cases, can still buy a home.

How Secure Is Your Password? Tips to Improve Your Password Security

How Secure Is Your Password? Tips to Improve Your Password Security

Any good IT article on computers and network security will address the importance of strong, secure passwords. However, the challenge of good passwords is that most people have a hard time remembering them, so they use simple or obvious ones that pose a security risk.

Top 10 Senior Scams and How to Prevent Them

Top 10 Senior Scams and How to Prevent Them

Senior scams are becoming a major epidemic for two reasons. First, seniors often have a lot of money in the bank from a life of working hard and saving.

Free Identity Exposure Scan
Instantly and Securely Check if Your Personal Information is Exposed on the Dark Web or Sold by Data Brokers
Please enter first name
Please enter last name
Please select a state
Close
Free Identity Threat Scan
Instantly Check if Your Personal Information is Exposed
All fields below are required
Please enter first name
Please enter last name
Please enter a city
Please select a state
Please enter an age
Please enter an email address
Close