August 11, 2021, | AtoZ Markets– Following the theft of $600 million, considered the largest cyber-attack in the history of cryptocurrencies. Hackers have returned about half of the funds they stole from the Poly Network.
Poly Network connects different types of blockchains so that they can work together. These hackers took advantage of a vulnerability in the platform to steal.
What Is Blockchain?
In simple words, that it is a data chain, or a ledger, or a database. Use the so-called encryption to store numerous transactions in it. Also, this chain or block of data must have several users (nodes) that are in charge of verifying the transactions to validate them.
You can also think of it as a chain of records stored in the forms of blocks which are controlled by no single authority.
Cryptocurrencies are based on blockchain, and each digital currency has its blockchain.
One example of blockchain technology is Bitcoin. Which was the first chain of blocks, and which allowed us to think about using this protocol for thousands of other functions.
How Did the Hackers Do the Theft?
DeFi is a concept used to name a set of financial products. Which have similar characteristics to traditional services but have been created on a blockchain.
The DeFi protocol for the operation of multiple blockchains, Poly Network, was violated on Tuesday, August 10. The attacker, or the hacking group, would have stolen at least $ 600 million in cryptocurrencies and tokens.
Poly Network was attacked on Binance Smart Chain (BSC), Ethereum (ETH), and Polygon (MATIC). Assets have been transferred to the following hackers’ addresses:
Meanwhile, after the theft was revealed, the company issued a statement asking the hackers to return the money.
Cyber-Criminals Returns Part of Funds
Meanwhile, in a bizarre development, the hackers began returning some of the funds they stole. The hackers sent a message to Poly Network embedded in a cryptocurrency transaction saying they were “ready to return” the funds.
DeFi platform responded by requesting that the money be returned via three cryptographic addresses.
As of 7 a.m. London time, more than $4.8 million had been returned to the Poly Network addresses. By 11 a.m. ET, about $258 million had been sent back, said CNBC report.
Then, the company urged cryptocurrency exchanges to “blacklist tokens” coming from the addresses that were linked to the hackers.
According to the stablecoin’s issuer, $33 million of Tether that was part of the theft has been frozen.
DeFi Receives a Lot of Criticism for Its Multiple Attacks
On the other hand, DeFi platforms have become a key target for attacks for some time now.
So far this year, DeFi-related attacks totaled $361 million, according to cryptocurrency compliance firm CipherTrace.
Moreover, in the first seven months of this year, these platforms accounted for 54% of the total crypto fraud volume compared to 3% for all of last year.
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