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Poloniex Exchange Hit by $100M Hack, Proposes 5% Recovery Bounty

Poloniex Exchange Hit by $100M Hack, Proposes 5% Recovery Bounty

Key Takeaways

  • Poloniex's wallet was hacked, leading to a loss of approximately $100 million in crypto assets.
  • Crypto exchange owner Justin Sun has pledged full reimbursement to affected users and offered a 5% bounty for the return of the stolen funds.
  • In an intriguing turn of events, Tron (TRX) experienced a significant price increase on the day of the Poloniex hack.

The cryptocurrency exchange Poloniex has reportedly suffered a breach leading to the loss of around $100 million in digital assets.

Blockchain security firms, including CertiK, believe this was caused by a compromised private key, which allowed attackers unauthorized access to the funds.

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On November 10th, abnormal transfers were observed from an account tagged as 'Poloniex 4' on Etherscan. While initial estimates pegged the losses at about $60 million, further investigations revealed that over $100 million worth of crypto assets were drained by the attackers.

CertiK's analysis indicates that the stolen funds have been distributed to four externally owned accounts, with some assets already being exchanged for Ether (ETH).

Following the detection of the breach, Poloniex promptly disabled the compromised wallet. However, an official statement from the crypto exchange addressing the hack is still pending.

Despite the absence of a formal announcement from Poloniex, Justin Sun, the entrepreneur who acquired the crypto exchange in 2019, took to X (formerly Twitter) to inform the public about the ongoing investigation into the hacking incident.

Sun assured that the affected users would be fully compensated, highlighting that the crypto exchange is in a "healthy financial position."

In a strategic move to recover the lost assets, Sun announced a 5% "white hat" bounty for the return of the stolen funds, granting the attackers a seven-day ultimatum before escalating the matter to law enforcement agencies.

Interestingly, in the wake of this hacking event, Tron (TRX), another of Sun's crypto projects, witnessed a 20% spike in its market value. The cryptocurrency jumped from $0.09 to $0.11 on the day of the hack, presenting a curious contrast to the crypto exchange's predicament.

The Poloniex breach underscores the ever-present threats in the digital asset space, even as it highlights the resilient nature of the broader crypto market. The crypto exchange's owner's response, combined with Tron's unexpected market behavior, reflects the complex dynamics at play in the world of cryptocurrencies.

Gile K., Market Sentiment Analyst
Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she's not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.



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