Poloniex Set to Resume Operations Following $114M Hack

Poloniex Set to Resume Operations Following $114M Hack

Following the significant breach, Poloniex, a cryptocurrency exchange owned by Justin Sun, plans to reinstate deposits and withdrawals within the coming week.

The announcement indicates that the security team continues developing the patches and tests.

In addition, the official X account stated that a comprehensive wallet update would ensue after the operations went live.

During the update, the company strongly advises users against making deposits, as doing so could result in monetary losses.

In an X post, Poloniex CEO Justin Sun verified that the breach compromised multiple wallets and stole approximately $114 million in funds.

Additionally, a 5% whitehat bounty was guaranteed in the event that the perpetrator facilitated the release of the funds.

Poloniex Seizes Attacker’s Assets

Currently, blockchain security firm Peckshield Inc. is investigating the breach.

Officials from Poloniex have confirmed that the attacker’s address has been identified and that the funds have been blocked, preventing them from being transferred to other financial entities.

In addition, the hacker was cautioned by Poloniex to reimburse all funds by November 25, 2023.

If not, legal action would be pursued with the assistance of authorities from numerous nations.

The exploiter’s identity was confirmed when Justin Sun executed $0.10 transactions to all the rogue wallets bearing identical messages confirming the attacker’s identity.

The exchange has verified in a statement that its restoration efforts in the wake of the $100 million theft are “mostly complete.”

About Poloniex Hack

A catastrophic security compromise occurred at Poloniex on November 10, during which intruders stole over $100 million worth of cryptocurrencies from the exchange.

The wallet was disabled after the Poloniex team identified the atypical outflows.

According to CertiK, a blockchain security firm, the occurrence was almost certainly a “private key compromise.”

Furthermore, the attackers stole 577 billion Shiba Inus (SHIB) and 3.1 million XRP.

Despite freezing withdrawals, Poloniex guaranteed customers that their losses would be reimbursed.

The exchange announced the resumption of deposits and withdrawals the following week, one week later.

Poloniex reached a resolution with the Office of Foreign Asset Control of the US Treasury Department for $7.6 million earlier in 2023.

The settlement pertained to over 65,000 alleged violations of various sanctions programs by Poloniex.

Poloniex is one of the oldest cryptocurrency exchanges, founded in 2013.

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