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?
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