PolyNetwork Hack: $611 Million Cryptocurrency Theft - Largest Hack to Date

The long-planned Cryptocurrency theft, say the security experts

Major Highlights 

• $611 million cryptocurrencies were stolen from PolyNetwork 

• PolyNetwork claimed that several users of tens of thousands have been affected

• It is uncertain who takes over the protocol on PolyNetwork, making it difficult to find what led to the hack on the platform 

 

To know more about Cryptocurrency scams read: 

• 5 MAJOR TYPES OF CRYPTOCURRENCY SCAMS THAT CAN FOOL YOU

 

As the demand for cryptocurrency has been growing day by day, there also comes the role of security to safeguard valuable cryptocurrency. The hack that shook the cryptocurrency market took place in PolyNetwork where the US$611 million in cryptocurrency theft occurred. The PolyNetwork is a protocol that allows users to conduct business across various blockchain networks. 

A letter that was posted by PolyNetwork on Twitter stated that “tens of thousands” of users have been affected by this theft. The stable coin Tether was also a part that got affected by this largest cryptocurrency theft and has frozen US$33 million protecting the cryptocurrency from hackers. 

Changpeng Zhao, CEO of Binance, one of the major cryptocurrency exchange platforms, tweeted about the attack saying, “Binance is aware of the attack and is coordinating with all our security partners to proactively help.” 

 

How did the cryptocurrency hackers steal more than US$600 million? 

According to a report by CNBC, PolyNetwork is a decentralized finance platform that connects various blockchain networks. Blockchain networks are vital decentralized ledgers that facilitate transactions among users without any clearance from the central authority. Since each cryptocurrency is having its own blockchain networks, PolyNetwork makes these blockchains coordinate and work together. 

And this might have been taken as an advantage to exploit the vulnerability that was attached to the PolyNetwork. The network tweets announcing that it was attacked on Binance Chain, Ethereum, and 0xPolygon. 

Later the security researchers at SlowMist, a cybersecurity research firm said that the stolen cryptocurrency was transferred to three different addresses. The researchers stated that this largest cryptocurrency theft is a long-planned attack. 

The security research firm said in a tweet, “Tracking possible identity clues related to the PolyNetwork attacker.” It also added that their researchers had “grasped the attacker’s mailbox, IP and device fingerprints”. 

The PolyNetwork in a tweet has also tried to reach the hackers urging them to return the hacked assets.