In another instance illustrating the never-ending match of wits between hackers and crypto networks, the Poly Network was exploited, losing almost $10 million in ETH, according to security firm Beosin. The network, serving as bridge to facilitate exchanges across different blockchains, confirmed its victim status on July 2nd via Tweet. The crafty intruder was able to mint $34 billion worth of crypto currency.
After the breach, the compromising individual possessed over $42 billion worth of tokens in their wallet. However, a total cashout remained elusive due to liquidity constraints and security measures. A notable detail about this breach was the hacker’s ability to mint 57 tokens across 10 blockchains, including Ethereum, BNB Chain, Metis, Polygon, Avalanche, Heco, and OKX.
The compromising event was rumoured to have occurred due overpowered private keys that governed Poly Network’s smart contract. Analysts pointed out that, it was not a flaw in the contract’s logic, but the unfortunate concession of keys in three admin wallets, that escalated this breach.
Interestingly, the Poly Network team remains tight-lipped on this narrative. In the aftermath, they suspended services and allied with centralized exchanges and law enforcement to track down the culprit and retrieve pilfered resources.
Binance‘s CEO, Changpeng Zhao, quickly assured customers that they were unaffected. He further emphasized the lack of deposit support from the Poly Network. Meanwhile, the damaged network advised projects to draw liquidity from decentralized exchanges and users to unlock their assets. The hacker was also called upon to return the stolen funds, as a reminder of potential legal consequences.
This attack is the second significant exploit on the Poly Network within a span of just 2 years. The 2021 attack had been a considerably large-scale affair, with hackers relieving the network of nearly $611 million in cryptocurrencies, a historical achievement in terms of crypto crimes. However, the criminals returned almost all of the assets promptly within 48 hours.
Security is a stern concern, one that the ever-evolving blockchain technology fights to uphold. It is therefore pivotal that networks continue to adjust to the ebb and flow of digital innovation, leaving no stone unturned to ensure users’ assets remain safe and secure.
Source: Cryptonews
