Here’s How Hackers Stole Over $600 million in the Poly Network Attack

Poly Network

In the past forty-eight hours, cross-chain decentralized finance (DeFi) solution, Poly Network was hacked to the tune of over $600 million. 

Created by the Founder of NEO, the Poly Network discovered three wallet addresses the hackers used to siphon funds. 

It seems the hacker is a white hatter (one driven by ethics) as they returned several sums to Poly network.

It was, of course, after several calls on Twitter by the Poly Network team to key actors within the cryptocurrency community to blacklist the wallets the hackers used.

                                                                      The Poly Network Attack Took Careful Planning

From the nature of the attack, the Poly Network took a lot of planning and peering into the smart contracts that govern the Poly Network.

The hack involved exploiting a specific loophole. 

 This loophole has more to do with transaction execution than with other operations. 

It raises questions about the various security audits and other practices that protect the cryptocurrency space from such attacks. 

It also means that Poly Network’s internal security policies failed to spot the loophole that was used by the 

It Could be the Largest Cryptocurrency Hack in History

Going by the various antecedents of other hackers, this hack is currently the biggest heist in the history of the cryptocurrency space. 

It comes when cryptocurrencies and their underlying technologies are becoming a part of popular culture.

 They are receiving mainstream attention from the general public. 

It points to the fact that cross-chain applications are the soft underbelly of the decentralized finance (DeFi) space. They could be the new focal point for fresh attacks after the flash loan hacks that took the world by storm last year. 

The Cryptocurrency Space Steps In 

Tether CTO Paulo Ardoino had already indicated yesterday on Twitter that his team froze $33 million.

 On his part, Changpeng “CZ” Zhao indicated the Binance team is aware of the attack and is doing all it can to help.

 It shows that self-regulation and policing could help stem the tide of such attacks if the attackers are aware of such consequences. 

However, total cooperation from the other members of the cryptocurrency space may be far-fetched for now, as many complexities exist in implementing such industry-wide practices. 

What’s Next for Poly Network?

As the world watches the cryptocurrency space in fascination, Poly Network and other cross-chain services like it are in for hot summer as other attacks are likely to follow. 

On their own, distributed ledgers are secure. 

However, cross-chain services and exchanges can be insecure, as there are many complexities to consider when securing such services. 

Then again, this could be a field day for cryptocurrency insurance. 

For now, the Poly Network events are still unfolding. 

 

 

About the author

Christopher is the Blockchain/DeFi Editor for E-Crypto News he also writes frequently about Crypto Gaming and Gambling. He is the author of the book "Profitable Cryptocurrency Gambling and Gaming: A Complete Guide." A content developer, Crypto-Enthusiast, and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

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XRP0.7518 0.06 % 1.93 % 2.70 %
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