Posted 9 months ago | by Catoshi Nakamoto

Cross-chain protocol Poly Network has been exploited on all of its chains for a total of $611 million, the largest known hack in crypto history thus far.

AdobeStock 338783436 Largest Hack In Crypto History $611 Million Stolen From Poly Network

UPDATE: 2:00 P.M. EST — Blockchain security firm SlowMist has said that they have tracked down the attacker’s real life ID. The firm claims to know their email address, IP information, and device fingerprint as well. The firm stated that the attacker’s original funds were swapped from Monero (XMR), which were later exchanged for — BNB, ETH, and MATIC, as well as other tokens, used to fund the attack.

The team behind the protocol posted a notice pleading exchanges and protocols themselves to blacklist the address that stole funds.

We are sorry to announce that #PolyNetwork was attacked on @BinanceChain @ethereum and @0xPolygon,” tweeted Poly Network. Adding, “We call on miners of affected blockchain and crypto exchanges to blacklist tokens coming from the above addresses.

For those unfamiliar with Poly Network, its protocol allows users to swap tokens across multiple blockchains, including — Bitcoin, Ethereum, Binance Smart Chain, Polygon, and more.

The assets that the hacker ended up stealing included — $273 million of Ethereum tokens, $253 million in tokens on Binance Smart Chain, and $85 million in USDC on the Polygon network.

Following the attack, Tether appears to have blacklisted the USDT on Ethereum that was stolen, an estimated $33 million in tokens are now useless according to Bitfinex’s CTO on Twitter.. That means the attacker can no longer move those funds at all. This illustrates that Tether can and will freeze stablecoin assets if needed, which could raise other concerns even if they are doing the right thing.

According to a post on Twitter, the hacker was tipped off about the Tether being unable to be transacted by a user known only as hanashiro.eth. The generous hacker then sent the person who tipped them off a tip themselves in the form of $42K worth of Ethereum or 13.37 ETH. This is significant because 1337 in hacker speak stands for leet or elite.

This was followed by other opportunists sending tips to the hacker to try and get them to send a tip back to them in ETH. Some users chose to congratulate the hacker, others tried to help them money launder the funds using mixer sites.

Binance CEO Changpeng Zhao also tweeted in response to the hack.  “We are aware of the exploit that occurred today. While no one controls BSC (or ETH), we are coordinating with all our security partners to proactively help. There are no guarantees. We will do as much as we can.

According to The Block and their researcher Igor Igamberdiev, who was one of the first to report the hack, the source of the attack was a “cryptography issue — which is not usually the case. It may have been similar to the Anyswap exploit, which saw $7.9 million stolen due to a hacker reversing the private key.”

As per the blockchain, the hacker appears to have tried to use Curve.Finance to exit. However, they are going to soon find that wasn’t the best of options to choose. Although, the hack appears to be rather sophisticated the hacker doesn’t appear to have planned this out very well. But time will tell as the funds are moved around. Despite the hacker appearing to be clueless on what they should do next this is still the largest attack in crypto history topping the Coincheck hack which was roughly $534 million.

Bitcoin is currently trading at {FIAT: $45,198.99] DOWN -2.0% in the last 24 hours according to Coingecko at the time of this report.

About Catoshi Nakamoto

c6ea0c3794492f30883e516d39b2597a?s=90&d=blank&r=g Largest Hack In Crypto History $611 Million Stolen From Poly NetworkActivist/Journalist, former writer - We Are Change, The Mind Unleashed, Coinivore, others. Currently writing for - Activist Post and Bitboy Crypto. Not Right or Left Apolitical. I Care About Truths (CATS.) Cryptocurrency enthusiast, I mined and lost 100+ BTC in 2010-2011. I work with - Bitboy, SoMee, CEEK, Presearch, and W3BT aka FMW Media Group. Friend of mostly everyone who isn't a dick. Just A Cool Cat.