Poly Network Users Lose 600+ Million Dollars In Crypto From Hacker

people hacking a computer system

Recently the latest cyberhacking incident took place involving the crypto industry. There was about 600+ million dollars of crypto assets stolen by a hacker on DeFi platform Poly Network.

That’s quite a lot of money to be stolen into the hands of one sophisticated person.

But what does this incident mean for the crypto world & software cybersecurity?

A lot of these questions for the crypto market & the lost assets is best explained by Andrei Jikh.

Watch the video for an overview of what happened by Andrei. Or read on the article without audio input.

A hacker with a background of cyberhacking, computer science, & blockchain stole crypto from users on the Poly Network.

$273 million in Ethereum, $253 million tokens of Binance Smart Chain, and $85 million USDC.

The platform that was compromised is polynetwork which is a decentralized exchange.

It wasn’t because the hacker had access to account records.

Instead, the hacker had verified himself as the blockchain manager to receive funds.

Does this mean every exchange is at risk of hack?

The answer to this is it depends on the institution, the practices of individuals, & the set of rules of how cryptocurrencies operate.

Each crypto exchange or any financial institution for that manner have their own security measures for online activity.

The Poly Network doesn’t have the same ecosystem as companies like Coinbase does in terms of wallet benefits, policies on theft/breaches, & credibility (for instance, being publicly tradeable).

What makes crypto ownership interesting is that anonymity of transactions protects identifiable information. However, there’s a public key displaying a random series of letters & numbers representing the wallet.

Things can get tricky if the hacker wanted to convert the stolen crypto into another currency that gives complete anonymity. He could also liquidize the assets or spend it, but then that would leave a digital trace of his transactions with the funds.

It has been reported recently that the hacker had returned a portion of the funds back to the Poly Network.

It would be scary to be a part of an industry prone to cyber hacks.

It is worth being optimistic that other crypto exchanges or financial institutions keep this event in mind to adapt or improve best practices.

What do you guys think? Is crypto still a viable financial tool or is it doomed for failure & shortcomings?

Let us know on our social! (more down below)

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Published by Richard Maya

Hello! Thank you for taking the time to explore the site. As a graduate student in counseling, I see how all aspects of life are interconnected and yet still affected by our decision-making, our chosen activities, and the relationships we nurture. Life is short, there is a lot going on with the world at accelerating rates, so much so it's increasingly difficult to keep up. With an ocean of information available over different media sources, it can feel overwhelming to get a grip over things we wish we have more control over. With this blog along with the newsletter, I hope that what you find, helps support your development. What has been important in my life, keeping a close eye on my health, how taking an active role in my academics and my career choices affect my livelihood, and understanding how money works, is probably on your mind too. Let this blog be your safehaven, to find the info you need to be more informed about your choices and lead you to a life better than you previously imagined. Thank you for your vote of confidence and look forward to seeing everyone a little more well-rounded. Cheers!

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