Two years after suffering a $611 million hack, the Poly Network bridge is once again being robbed of funds. The protocol has closed its platform to users and is attempting to block the attacker’s assets by any means necessary. Fortunately, thanks to a lack of liquidity, the losses incurred by the attack have been kept to a minimum. We take stock of the situation.
Poly Network suffers another hack
This Sunday, the cross-chain bridge deployed by Poly Network was targeted by a hacker. As a result, the platform dedicated to the exchange of cryptocurrencies between different blockchains has suspended its services indefinitely.
Dear users, we would like to inform you that Poly Network is temporarily suspending its services due to a recent attack. We are actively engaging with relevant parties and diligently assessing the extent of the affected assets. 【1/3】
– Poly Network (@PolyNetwork2) July 2, 2023
» Dear users, we would like to inform you that Poly Network is temporarily suspending its services due to a recent attack. We are actively working with the parties involved and are diligently assessing the extent of the assets affected. «
According to the latest information, 57 cryptocurrencies are affected by the attack, all scattered across 10 different blockchains. This includes the Polygon, Avalanche, Ethereum and BNB Chain networks, to name but a few.
The origin of the hack? A function of the smart contract hosting the cash has been exploited to create new tokens which, in reality, do not exist in the protocols issuing the cryptocurrencies concerned.
Theoretically, the thieves created new tokens now worth over 42 billion dollarsmore than half of which in BNB and BUSD. However, due to a lack of liquidity on the platform, the hacker’s profits plummeted. He left with $5.5 million in his pocket.
To avoid any spillover from the hack that could cause further losses, Poly Network is advising its teams and cryptocurrency holders to withdraw their cash. At the same time, the protocol assures that it is in correspondence with legal authorities. to push the hacker to resign :
« We have already initiated communication with centralized exchanges and law enforcement agencies to solicit their assistance. We hope the attacker will cooperate and return the assets to avoid any potential legal consequences. «
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A previous $600 million hack
One of the priorities of Web3 applications is to be able to guarantee the security of their users’ funds while guaranteeing the transparency of their protocols. As a result, great importance is attached to the fight against hackers.
In the past, Poly Network has failed in this mission: having $611 million stolen from its account in an attack in August 2021, the protocol suffered the biggest financial loss from a hack in its time on Web3.
A few days after the operation, the assailant returned the stolen funds in full. For his part, the protocol had lifted all charges against him. He will receive a $500,000 reward, as well as a position as IT security consultant for the company behind the protocol.
At the time of writing, the hack that has stolen the most funds is that of Ronin Network. The Axie Infinity game sidechain suffered a loss of $624 millionagain through a bridge.
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Source: Poly Network
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A lifelong enthusiast for new technologies, I gradually became involved in Web3 activities in the year 2021. As time went by, I wanted to do my bit. That’s when I became a writer, with a view to explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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