$12M Hack Forces Polter Finance to Shut Down Operations

Crypto News Exploits

$12 Million Hack Forces Polter Finance to Shut Down Operations

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 18, 2024

Key Takeaways

Polter Finance halted operations after a $12 million hack traced to a flash loan exploit targeting its BOO token market;
The platform filed a police report and partnered with SEAL-ISAC to track down the attacker;
Community skepticism over possible insider involvement adds pressure to the ongoing investigation.

Stop overpaying - start transferring money with Ogvio. Sign up, invite friends & grab Rewards now! 🎁

$12 Million Hack Forces Polter Finance to Shut Down Operations

BITDEGREE IN YOUR SOCIAL FEED

A major breach forced Polter Finance, a decentralized platform for lending and borrowing, to halt its operations.

The exploit drained $12 million, prompting immediate action, including notifying authorities and seeking assistance to recover the funds.

The platform suspended activity on November 17 after detecting a security vulnerability. Investors were alerted on X as the company began tracing the stolen assets, which were ultimately linked to wallets on Binance $7.2B .

How to Store NFTs in 2023 (3 Most Secure Ways Explained)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Web3 security firm TenArmor attributed the breach to a flaw in Polter Finance’s oracle pricing mechanism. The newly launched SpookySwap BOO $0.0348 market, integral to the platform, became the target of a flash loan exploit.

Polter Finance issued an on-chain message to the attacker, however, no response had been received at the time of reporting. To strengthen its efforts in identifying the culprit, Polter Finance partnered with the Security Alliance Information Sharing and Analysis Center (SEAL-ISAC). The collaboration aims to enhance investigative capabilities and prevent further financial harm.

The platform’s anonymous founder, known by the pseudonym Whichghost, took legal action by filing a report with Singaporean authorities. Details from the report indicate that the breach resulted in losses exceeding 16.1 million Singapore dollars (equivalent to $12 million). Among these losses was over $223,000 in personal funds belonging to Whichghost, who stated that their login credentials had not been shared.

Despite Polter Finance’s efforts to address the breach transparently, skepticism emerged from the crypto community. Some suggested that the incident might have been an insider operation.

In other news, a grad student was left unsettled after receiving a disturbing response from Google’s AI model, Gemini. What exactly did the AI say? Read the full story.