In what is expected to be one of the largest cryptocurrency scams ever, cybercriminals have returned roughly half of the $600 million they took. The hackers took advantage of a flaw in Poly Network, a technology that interconnects different blockchain technology so that they might collaborate. Poly Network announced the hack on Tuesday and requested that the attackers communicate with them, requesting them to “return the hacked assets.”
What happened behind this declaration?
According to Chainalysis, a blockchain forensics firm, the hackers took advantage of a flaw in the contractual obligation Poly Network which is used to shift assets across blockchains. The alleged hacker added that returning the tokens was “always the plan,” adding, “I am not very interested in money.” The hacker or hackers team has not been discovered, and Reuters was unable to verify the communications’ validity.
Poly Network made an appeal to the cybercriminals on Tuesday, requesting that the money be returned and urged cryptocurrency exchanges and miners to block tokens from the criminals’ wallets. “The amount of money you hacked is the biggest in defi history,” Poly Network tweeted on Tuesday, claiming that hundreds of thousands of users had been affected.
A blockchain is a distributed ledger that serves as the foundation for multiple cryptocurrencies. Each virtual coin does have its own blockchain, which is distinct from the rest. Poly Network appears to be able to connect all of these different blockchains. Poly Network is a framework for decentralized money.
DeFi is a broad word that refers to a range of financial services based on blockchain technology that aim to eliminate middlemen like brokerages and exchanges. As a result, it’s known as decentralized. This, according to proponents, can affect economic applications including such borrowers’ and lenders’ transactions more efficiently and cost-effectively.
The funds are being returned by the hackers
And then out of the blue, on Wednesday, shocking news was being flooded over everywhere. The business at the center of one of the largest ever cryptocurrencies heists announced on Wednesday that hackers have refunded more than a 1/3 of the $613 million in virtual currencies they took.
On Twitter, Poly Network, a decentralized banking network that supports peer-to-peer transfers, announced that $260 million of the stolen money had been restored, but $353 million remained unclaimed. On Wednesday, the hackers reacted by declaring they were “ready to return” the money they had stolen.
It’s uncertain when they’ll get the money back in full. The hackers experienced and somehow were encouraged to return some of the money they took on Wednesday, in an unusual turn of events. The money was to be delivered to 3 crypto addresses, according to the DeFi platform.
As per the digital messages given by Elliptic, a crypto monitoring firm, and Chainalysis, an individual claiming responsibility for the breach said they executed it “for fun” and wanted to “highlight the weakness” before others could leverage it. Everyone was shocked to hear the intention but it was surely unique and adventurous for the hackers, the company and of course the audience.
The hassles of trafficking stolen crypto on such a large scale, according to Tom Robinson, co-founder of Elliptic, may have influenced the intention to switch the cash. Tether’s CEO said on Twitter that the company has frozen $33 million in connection with the attack, while officials from those other cryptocurrency exchanges told Poly Network that they’ll also try to assist.
In conclusion, it was accepted by many that DeFi proponents claim that it provides free access to financial services to individuals and businesses, claiming that the concept will reduce costs and stimulate economic activity. However, technological defects and vulnerabilities in their computer programming may expose them to hacking.