Poloniex’s $126M Crypto Heist: Justin Sun’s Pledge to Make Things Right

"Poloniex Acknowledges Unauthorized Transactions Involving Multiple Cryptocurrencies; Hacker at Large"

Poloniex, a prominent digital asset exchange, has recently experienced unauthorized transactions involving a wide range of assets, including USDT, BTC, USDD, USDC, ETH, FLOKI, TUSD, and others. Initially, the exchange attributed the disabled wallets to routine maintenance activities. However, as user reports and pressure from the crypto community mounted, Poloniex acknowledged the severity of the situation.

The hacker responsible for the breach employed sophisticated tactics utilizing both the Ethereum and TRON blockchains. By using stolen USDC to purchase TRX on Ethereum and USDT on the TRON chain, they managed to accumulate approximately 206 million TRX, equivalent to around $22.8 million. This activity caused an abrupt 8% increase in the price of TRX, which is currently trading at $0.10. Over the past 24 hours, the price of TRX fluctuated between $0.097 and $0.11.

In response to this security lapse, Poloniex has disabled the compromised “Poloniex 4” wallet and is conducting thorough maintenance to address the issue. Peckshield, a reputable crypto-security firm, played a crucial role in detecting the irregular outflows that led to the identification of a wallet labeled “Poloniex Hacker 1.”

Justin Sun, the current owner of Poloniex, took to Platform X (formerly known as Twitter) to inform users about the ongoing investigations and to offer reassurance that all affected parties will be fully reimbursed for their losses. Sun has also issued a white hat bounty offer to the perpetrator, promising a 5% reward from the stolen funds if returned within a seven-day period. Failure to comply with this offer will result in law enforcement involvement.

This breach serves as a critical reminder of the vulnerabilities present in digital asset platforms. Poloniex, which has been operational since 2014, underwent ownership changes from Circle in 2018 for $400 million before being acquired by Justin Sun in 2019. As investigations continue, the crypto community is closely monitoring the situation for further developments and implications for security practices within the industry.

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Martin Reid

Martin Reid

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