Here’s how hackers stole $613 million in cryptocurrency

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Here’s how hackers stole $613 million in cryptocurrency

PolyNetwork connects different BlockChain to work together as a decentralized platform. It is built to implement interoperability between multiple chains in order to build next-generation internet infrastructure.

Blockchain is like a digital ledger for various cryptocurrencies. It is used to record information in a way that cannot be modified, hacked, or cheat by the system. It is likely to be a database but in a decentralized way. Each and every time a transaction is made by various cryptocurrencies, a record of that transaction will be added to blocks and chained together. For more details about BlockChain, refer to this article from Euromoney.

How does PolyNetwork work?

Each digital coin has its own blockchain. PolyNetwork claims that various blockchains work altogether by making a decentralized system. PolyNetwork is a Decentralized Finance (Defi) platform, which gives a solution to cut out the intermediaries like exchange and brokerages by forming a decentralized token exchange platform. It also claims that exchanging and borrowing will be made easier and cheaper through the platform.

How did the PolyNetwork hack happen?

On Tuesday night, PolyNetwork disclosed the attack from its first tweet with an important notice saying “We are sorry to announce that PolyNetwork was attacked on BinanceChain, Ethereum, and 0xPolygon assets”. Also mentioned some attackers addresses where the assets have been transferred to, and call upon miners to blacklist tokens coming from those following addresses.

In the meantime, the rumor was spreading across social media that the attack was caused by a single keeper. PolyNetwork replied that “After a preliminary investigation, they found out that the hacker exploited the vulnerability between contract calls” and not as the rumor follows. Security researchers from SlowMist said that over $610 million worth of cryptocurrencies have been transferred to various different addresses by the attacker. To know more details about how the attacker exploited the vulnerability, please read the following medium blog from SlowMist.

Statement by PolyNetworks:

After the attack happened, PolyNetwork made an official statement on Twitter by urging the “hackers to return the assets that have been stolen”. It also mentions that we will sort out a solution or else “legal action will be taken against the hacker”.

It also states that this is one of the “biggest theft ever that happened in defi history”. Also mentioned, the money stolen by the attacker is from tens and thousands of crypto community members, and “you should talk to us to work out a solution”.

PolyNetworks also said they will take legal action to urge the hacker to return the assets. Meanwhile, CEO of Binance Mr. Changpeng Zhao says “He was aware of the attack” and binance is coordinating with all security partners to proactively help but “there are no guarantees”. 

At last, He said we will do our best to investigate further and block all illegal transactions associated with the hack.

Conclusion:

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