Crypto News

Cryptocurrency theft hacker returns $ 260 million in funds

The hackers behind one of the biggest crypto thefts to date have returned nearly half of the $ 600 million (£ 433 million) stolen assets.

On Tuesday, the company was affected and Poly Networks posted a letter on Twitter asking people to contact “Develop a Solution.”

The hacker then promised to return the funds, claiming he was “not very interested in the money”.

On Wednesday, Poly Networks said it had received back $ 260 million.

The company is a blockchain platform that enables users to exchange different types of digital tokens. The company posted on Twitter that it had returned three cryptocurrencies, including Ethereum valued at $ 3.3 million and Binance valued at $ 256 million. $ 1 million worth of coin and polygon.

A total of $ 269 million worth of ether tokens and $ 84 million worth of polygon tokens are yet to be recovered.

Blockchain is a ledger or record of every transaction made up of cryptocurrencies (like bitcoin).

The ledger is distributed to all network users to review all new transactions as they occur, rather than being held by an institution.

Software error

Tom Robinson, the co-founder of Elliptic, a London-based blockchain analysis, and compliance company, said hackers posted a three-way question-and-answer session on one of the blockchains, which was basically a form of self-interview.

The hacker claimed he planned to return the tokens and said the theft was done to reveal vulnerabilities in the Poly Network software.

“I know it hurts when people are attacked, but shouldn’t they learn something from these hackers?” Wrote the hacker in a note embedded in the Ethereum blockchain.

Hackers claimed to be looking for exploitable vulnerabilities all night. They said they were concerned that Poly Network would silently close security holes without telling anyone, so they decided to take millions of dollars in cryptocurrency tokens to illustrate this point.

However, they stressed that they didn’t want to cause “real panic in the crypto world” so they just took “major currencies” and left Dogecoin, which was a joke at first.

  • Hackers stole $ 600 million in major crypto theft
  • Hackers returned $ 25 million in “stolen” cryptocurrency

“Either they just pretend to steal and steal assets, or they expose vulnerabilities like white hat hackers to make the poly network stronger and more secure,” said Robinson, who is frequently crime-related government and law enforcement agency advises with encryption. BBC.

He added that the nature of blockchain technology makes it difficult for cyber criminals to profit from digital currency theft as anyone can see the funds being transferred to the hackers’ wallets over the network.

Mr Robinson said, “I want to know if this hacker stole the funds, how much publicity and attention they are getting, know that they are being monitored wherever the funds are being transferred, and decide to return them.”

“The blockchain itself works perfectly here, but the problem is that with blockchains like Ethereum you can write your own smart contracts. Various services have started to provide this, including Poly Network.

“So every time someone writes code, they can make mistakes.”

How does this work

When people use one cryptocurrency to trade another cryptocurrency, the Poly Network platform works by making it easier to move between multiple blockchains, e.g. B. the exchange of Ether with Binance Coin.

James Chappell, co-founder of London-based network security firm Digital Shadows, said, “Poly Network makes it easy to switch between these chains – after all, it’s software, it’s code, and code is always buggy and buggy. Error. “

“This applies to banks or any financial system. Unfortunately, it seems to happen here that one of the parties discovered a vulnerability in the implementation and used it to accidentally trick the network into transferring these tokens.”

Several other services have faced similar attacks in the past 12 months. These include:

  • Yearn Finance, $ 11 million stolen by hackers in February;
  • Alpha Finance, stolen $ 37 million in the same month;
  • And Meerkat Finance, from which hackers stole $ 32 million in March.

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