Poloniex exchange announces a 5% incentive after a $100 million exploit
Security companies think that a huge hack took over $100 million worth of digital assets from a wallet that belonged to the cryptocurrency exchange Poloniex.
Etherscan, a blockchain explorer, has detected unusual withdrawals from a cryptocurrency wallet belonging to digital asset exchange Poloniex. Experts in blockchain security estimate that the hack cost the organization $100 million in cryptocurrency.
Millions of crypto were moved from an Etherscan account called Poloniex 4 on November 10. It was estimated that the losses would total roughly $60 million. The amount of money stolen, however, ended up being more than $100 million.
A “private key compromise” was likely the cause of the issue, according to blockchain security company CertiK. The security company said that $2,086 worth of Ether has been exchanged for some of the accounts and that the funds have been moved to four accounts held by other parties.
The exchange shut down the wallet because of the unusual withdrawal patterns. However, the market has yet to issue a comment on the incident. Cointelegraph also tried to contact Poloniex but did not hear back from them right away.
Although no official comment has been issued as of yet, Justin Sun, who purchased the exchange in 2019, has indicated that the team is actively investigating the hacking event via a post on X (previously Twitter). Sun claims it would compensate impacted subscribers in full for the data leak. Executives have said that the market “maintains a healthy financial position” and are actively seeking partnerships with other markets to help them recoup the missing funds.
Sun also provided the Poloniex hacker with a 5% white-hat reward. The CEO has said that they would allow the assailant seven days to repay the funds before cooperating with police enforcement.
Meanwhile, digital asset information tracker CoinGecko reports that the value of Tron, the native cryptocurrency of one of Sun’s other crypto projects, has increased by 20% despite being struck by a bad event. The value of the cryptocurrency rose from $0.09 to $0.11 on the day of the hacking.