Poloniex Exchange Confronts $100M Security Breach, Offers Hacker Bounty

Key Points:

  • Poloniex wallet hack prompts over $100 million in asset movement.
  • Justin Sun assures reimbursement and collaborates for fund recovery.
  • Tron’s value spikes despite Poloniex’s cryptocurrency breach incident.

In a recent turn of events, the digital currency exchange Poloniex has become the latest victim of a significant security breach, with over $100 million worth of digital assets illicitly moved from one of its wallets. This incident, identified through the blockchain explorer Etherscan, has raised serious concerns within the cryptocurrency community.

The breach was first noticed on November 10 when large sums of cryptocurrency were moved from an account known as Poloniex 4 on Etherscan. The initial assessment estimated the loss at around $60 million. However, subsequent evaluations revealed that the attackers stole exceeded $100 million. Blockchain security specialists, including the team at CertiK, suggest that the breach likely stemmed from a compromise of the exchange’s private keys. CertiK’s analysis also revealed that the stolen funds had been distributed across four separate accounts, with some of the assets being converted into Ether.

Poloniex Exchange
Poloniex Exchange

In a swift response to these unauthorized transactions, Poloniex immediately disabled the affected wallet. Despite this action, the exchange has yet to release an official statement regarding the incident. Media inquiries directed at Poloniex have so far gone unanswered.

Justin Sun’s Statement on Poloniex

Amidst this turmoil, Justin Sun, who took ownership of Poloniex in 2019, addressed the situation on the social media platform X (formerly known as Twitter). Sun assured that the exchange’s team is actively investigating the hacking incident and emphasized their commitment to reimbursing all users impacted by the security breach. He affirmed the exchange’s robust financial standing and mentioned efforts to collaborate with other exchanges to recoup the lost assets.

Furthermore, Sun has extended an intriguing proposal to the perpetrator, offering a 5% white-hat bounty to return the stolen funds. He outlined a seven-day window for the return of the assets before the exchange escalates the matter to law enforcement.

Interestingly, despite this security setback, the cryptocurrency market has shown resilience. Tron, a digital currency associated with another of Sun’s crypto ventures, witnessed a remarkable 20% surge in value. CoinMarket Cap, a digital asset information platform, noted that Tron’s value leaped from $0.09 to $0.11 on the day of the hack, highlighting the cryptocurrency market’s dynamic and often unpredictable nature.

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