Another Hack As Popular Centralized Exchange Gets Targeted

Poloniex, a popular centralized cryptocurrency exchange (CEX), appears to have experienced a security breach involving one of its wallets, identified as Poloniex 4 on Etherscan. An examination of the apparent hot wallet reveals various suspicious outflows, indicating a substantial impact on its funds. The estimated value of these outflows linked to the incident, based on on-chain data, now surpasses $100 million.

Over $100 million at risk

Although the exchange has not officially disclosed the affected amount, preliminary assessments via analyst firms PeckShield and Arkham Intelligence suggest that crypto assets exceeding $100 million may have been compromised.

The exchange acknowledged the situation through its customer support X account, stating that the wallet in question has been disabled for maintenance and that regular updates will be provided. Having functioned as a centralized exchange since 2014, Poloniex was acquired by Tron founder Justin Sun in 2019.

In response to the incident, Sun asserted that Poloniex is actively investigating the hack and committed to reimbursing all affected user funds. He claims that the team is currently looking into the incident, before adding that Poloniex maintains a healthy financial position and will fully reimburse the affected funds.

Damage control

Sun also proposed a 5% whitehat bounty to the attacker, contingent on a complete fund return, setting a seven-day deadline before considering legal action with law enforcement. Addressing the situation later in the day, Sun reported that the Poloniex team has successfully identified and frozen a portion of the assets associated with the addresses of the hacker.

According to Justin, the losses are presently within manageable limits, and the operating revenue generated by Poloniex should be able to cover these losses. Additionally, he mentioned that the team has restored all Poloniex systems, preserved relevant evidence, and aims to gradually resume deposits and withdrawals, ensuring 100% security.