Fun

Stolen Poloniex Ether worth $53M never made it back to the exchange

News Feed - 2024-05-14 05:05:49

Arijit Sarkar58 minutes agoStolen Poloniex Ether worth $53M never made it back to the exchangeThe Poloniex hacker moved over 17,800 Ether from six different wallets into a single Tornado Cash address.279 Total views9 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksOver half of the $100 million worth of Ether linked to the infamous Poloniex hack from November 2023 has been siphoned via the privacy protocol Tornado Cash.


On Nov. 10, 2023, wallets belonging to crypto exchange Poloniex recorded massive unauthorized outflows. Investigations later confirmed that over $100 million worth of Ether (ETH) was lost to a hack.


Despite Poloniex claiming to have identified the hacker weeks later and offering a $10 million bounty, the stolen funds never made it back to the exchange. According to the blockchain security firm CertiK, the incident was likely a “private key compromise.”


In response to the suspicious outflows, the exchange had temporarily disabled the compromised wallet.On-chain message from Poloniex to the hacker. Source: PeckShield


Six months later, it became evident that the Poloniex hacker had no intention of returning the stolen funds. Blockchain investigation firm PeckShield found that more than half of the loot was siphoned across Tornado Cash, a protocol used to anonymize assets.Poloniex hacker transferring stolen funds to Tornado Cash wallet. Source: PeckShield


The hacker moved over 17,800 ETH from six different wallets into a single Tornado Cash address, as shown in the flowchart above. At the time of transfer, the tokens were worth approximately $53.3 million.


Related:Pike Finance exploited for $1.6M in second incident in 3 days


Poloniex resumed operations shortly despite the $100 million setback, enabling investors to deposit and withdraw crypto at will.


The exchange appointed a “top-tier security auditing firm” to enhance the security of funds on Poloniex and avoid such hacks in the future. At the time. The company had said:“Currently, they are in the final stages of the security audit and verification processes for Poloniex. Upon completion of the audit, we will promptly resume deposit and withdrawal services on our platform.”


Poloniex owner Justin Sun — who acquired the exchange in 2019 — had promised to fully reimburse the users affected by the breach, claiming that Poloniex “maintains a healthy financial position” and is looking for collaborations with other exchanges to recover the lost funds.


Magazine:What do crypto market makers actually do? Liquidity, or manipulation# Altcoin# Ethereum# Hackers# Cryptocurrency Exchange# Hacks# Justin Sun# Tornado CashAdd reaction

News Feed

Ray Salmond3 hours agoBitcoin price could hit $750K to $1M by 2026 — Arthur HayesBitMEX founder Arthur Hayes expects Bitcoin to be $750,000 by 2026. Here’s how and why.3236 Total views13 Total sharesListen to article
Gold Rush Or Bitcoin Boom? China Buys Big, BTC Price Follows
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
US Regulators and the Fed Jointly Issue Crypto Warnings
US Regulators and the Fed Jointly Issue Crypto Warnings The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OC
Ethereum Fakes Out Bears – Altcoin Rally Depends On Key Level Breakout
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
World’s Largest Monero Accepting Darknet Market Reveals Retirement Plan — White House Admins Say DNM ‘Reached Its Goal’
World"s Largest Monero Accepting Darknet Market Reveals Retirement Plan — White House Admins Say DNM "Reached Its Goal" One of the largest darknet markets (DNM), White House, ann
Cardano (ADA) loses top 10 crypto spot as Tron sees growth
Nancy Lubale6 hours agoCardano (ADA) loses top 10 crypto spot as Tron sees growthADA falls from the top 10 list of largest cryptocurrencies as competing blockchains see an uptick in users. 998 Total views1 Total sharesL
Savannah Fortis14 hours agoUS considers tightening restrictions on AI chip exportsOfficials in the United States are considering restricting the computing power of chips to lessen the flow of AI chips available in the Ch
Report: Uniswap Seeks to Raise $200 Million in Fresh Capital at $1 Billion Valuation
Report: Uniswap Seeks to Raise $200 Million in Fresh Capital at $1 Billion Valuation The largest decentralized exchange (dex) platform by global trade volume, Uniswap, is looking t
Quidax Becomes the First African Crypto Exchange to be Listed on CoinMarketCap
Quidax Becomes the First African Crypto Exchange to be Listed on CoinMarketCap press release PRESS RELEASE. Last week Africa founded cryptocurrency exchange, Quidax, announced that
XRP Price Confirms Bullish Reversal Setup With This Demand Zone
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Citadel, Charles Schwab, Fidelity Join Forces to Build Cryptocurrency Trading Platform
Citadel, Charles Schwab, Fidelity Join Forces to Build Cryptocurrency Trading Platform Citadel Securities and Virtu Financial are reportedly building a cryptocurrency trading platf
FBI Seizes Bitcoin Worth More Than $2.2 Million From Ransomware Affiliate
FBI Seizes Bitcoin Worth More Than $2.2 Million From Ransomware Affiliate The Federal Bureau of Investigation (FBI) has seized bitcoin worth more than $2.2 million tied to ransomwa