Poloniex Exchange Hit by Suspected Theft of Over $60 Million in Asset Loss

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Published: November 10, 2023 at 7:20 am Updated: November 10, 2023 at 7:20 am

Edited and fact-checked:
November 10, 2023 at 7:20 am

In Brief

Justin Sun’s Poloniex exchange has reportedly been hit by theft, with potential asset losses exceeding 60 million US dollars.

Justin Sun’s Poloniex exchange has reportedly experienced a significant security breach, with suspected theft leading to a potential loss exceeding $60 million. This incident underscores the persistent risks and challenges faced by digital asset exchanges in maintaining robust security measures.

In response to the breach, Poloniex has temporarily disabled its exchange wallet for maintenance. The platform has assured users that updates will be provided once the wallet is back online. This response reflects their commitment to transparency and user security following the incident.

We are currently investigating the Poloniex hack incident. Poloniex maintains a healthy financial position and will fully reimburse the affected funds. Additionally, we are exploring opportunities for collaboration with other exchanges to facilitate the recovery of these funds.

— H.E. Justin Sun 孙宇晨 (@justinsuntron) November 10, 2023

Poloniex’s Asset Loss Traced

Analysis of the exchange’s wallet activity reveals a drastic decrease in balance, plunging from $28 million to a mere $800,000. This sharp decline highlights the scale of the assets affected by the unauthorized access.

Etherscan’s data tracking shows the attackers receiving assets worth $28 million, adding to the severity of the breach.

In a twist to the event, the hacker responsible for the breach appears to have made a significant error. While intending to transfer $2.5 million in GLM tokens to a sale address, the hacker mistakenly sent them to the deployer’s address. This mistake could provide a lead in tracing the perpetrator and recovering the assets.

The incident at Poloniex not only brings to light the security vulnerabilities of crypto exchanges but also the swift and often complicated nature of digital asset transfers. It serves as a reminder to exchanges of the importance of stringent security protocols. Similarly, it underscores for users the need for vigilant asset management.

For more details and ongoing updates on the situation, interested parties can visit Etherscan and Zerion for transaction histories and asset tracking at Etherscan and Zerion.

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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master’s degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti