What was arguably the largest crypto hack ever happened on the Poly Network on Monday, August 10th, 2021. In this case, crypto funds worth more than $600 million were lost.
Poly Network is a decentralized finance provider that enables users to move tokens tied to one blockchain to another. As one of their main use cases, they provide an intra-blockchain bridge that permits tokens to be locked in one blockchain and unlocked in another.
By unlocking tokens on the sending blockchain without also unlocking the corresponding amount on the receiving blockchain, the hacker was able to hijack the system. Ethereum, Binance Smart Chain, and Polygon were affected.
In the mechanism facilitating transactions between blockchains, the hacker found a bug and carefully exploited it.
As a result, the hacker began a personal Q&A embedded in transactions out of their account, saying they did it for fun and saw it as a challenge as soon as the bug was spotted and they saw it as a challenge. Following their disinterest in the stolen money in the embed transactions, the hacker started returning the stolen assets in an apparent show of morality or modesty.
In response to the hacker’s frenzy, Poly Network has offered him a half a million-dollar bounty and a position as their Chief Security Adviser. Additionally, the DeFi company announced they won’t prosecute the villain who became a hero. From the hacked sum, the organization has received $400 million.
There is no doubt that Poly Network has undertaken the task of securing itself and rebuilding its defences. It is in the interest of anyone looking at crypto currency as an investment avenue to consider security first in the global crypto community.
As a leader in the area of hack-proof security, one of the world’s leading Crypto trading platforms, FTX has a proven track record in the safety of user’s interests and assets.