One of the biggest digital hack for the largest cryptocurrency theft of all time. The Poly Network is a decentralised finance platform that supports conductance of transactions via swapping of tokens between users of different blockchains.
What Happened Exactly ?
It declared via it’s Twitter handle, on 10th August 2021, Tuesday that around $602 million of different crypto assets including Ethereum, Binance Smart Chain (BSC), Polygon were stolen. This came to be reported by the blockchain researcher. Further, the company pleaded to the hacker to contact the company with an offer to return the tokens.
With this, the next day, on 11th August 2021, the company confirmed that about $260 million of cryptocurrencies, tokens and stable coins were returned in the three blockchains. But, the rest that $342 million was outstanding.
Though after Wednesday, there was still a lot of amount of digital currency missing, the hacker mentioned that they were purposely returning the assets in a slower manner in-order to protect their identity and from coming into the grudges of the cyber crime department. Surprisingly the hacker also wrote, that “It was always a plan to return the tokens. I am bot very interested in money.”
The Consequences !
According to the market reports, the messages that were implanted within the Ethereum transactions sent from the account that was controlled by the hacker. It is came to be known that around 17 hackers together had done this.
They revealed that it wasn’t intentional to keep the digital assets, cryptocurrencies, and added that this way just done “for fun.” In an elongated Q&A session, the hackers said that they were looking forward to expose a Poly Network’s vulnerability in the digital contracts. They added that, “didn’t want to cause a real panic in the crypto world.”
“The pains they have suffered is temporary but memorable. I would like to give them tips on how to secure their networks.” added the hacker, to Poly Network. Alongside they said that, “The Poly Network is a decent system. It was one of the most challenging attacks that a hacker could enjoy. I had to be quick to beat any insiders or hackers.”
Later on, certain reports have also revealed the hacker eventually began selling and swapping stable coins because they were not happy with the way Poly Network responded to the hack as they wanted to earn interest on the stolen money while they negotiated with the company.
Summing it up, Tom Robinson, the co-founder of Elliptic said that even if they would decide to keep the stolen crypto-assets, concealing them to sell it off to a third party would be extremely difficult because of the transparency of the blockchain a wide use of blockchain analytics by financial institutions.
However, this $600 million theft, surpasses the record of $474 million in criminal losses that was registered by the entire decentralized finance (DeFi) sector from January to July, with reference to the crypto intelligence company Cipher Trace. This signifies the risks of many unregulated DeFi sectors. They allow transactions in cryptocurrency without the involvement of gatekeepers like banks or exchanges.