Poly Network Protocol Stolen Over $ 600 Million – Biggest Crypto Hack Ever

Poly Network protocol loses $ 611 million

Black day for the world of decentralized finance (DeFi). The Poly Network multi-chain protocol has just been the target of an unprecedented attack since the creation of this ecosystem. Over $ 611 million was drained by an attacker, making this the largest DeFi hack to date.

The funds thus stolen included at the time of the attack, $ 273 million in tokens on the Ethereum blockchain, $ 253 million in tokens on the Binance Smart Chain and $ 85 million in USDC on the Polygon network.

Poly Network development teams confirmed the news on Twitter, sharing the addresses implicated in the attack. Poly Network being a protocol focused on interoperability between blockchains, it is quite conceivable that other products that use the latter will also be affected by losses.

To prevent the attacker from reselling the stolen funds, Poly Network asks the miners of the blockchains concerned, but also the cryptocurrency exchange platforms to blacklist tokens from addresses linked to the attack.

Several entities, including Tether, OKEx and Binance, have already taken measures to curb the movement of stolen funds. Nonetheless, the Ethereum address in question has made several attempts to deposit funds on the Curve protocol. The first deposit attempts failed thanks to the intervention of the miners, but one of the transactions managed to slip through the cracks:

The Ethereum address 0xC8a65 that stolen PolyNetwork funds began to try to deposit funds into https://t.co/AAn7stOsmU. Money laundering. The first few transaction attempts may be rejected by the mining pool and failed, but the subsequent transaction was successfully … pic.twitter.com/YbbGA9Xvyc

– Wu Blockchain (@WuBlockchain) August 10, 2021

“The main cause of this hack is a cryptography problem, which is not usually the case. It appears that the attackers somehow created a fake transaction signature to steal the funds, ”according to Igor Igamberdiev, analyst for The Block Research.

Also, it may well be that this attack is the largest cryptocurrency-related hack to date. This sad record was previously held by the centralized platform Coincheck which lost nearly $ 534 million in January 2018.

👉 On the same topic – The SafeDollar “stablecoin” drops to zero after exploiting a flaw in its protocol

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About the author: Clément Wardzala

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Editor-in-chief of Cryptoast, I discovered Bitcoin and blockchain technology in 2017. Since then, I have endeavored to share qualitative content so that the sector is democratized among everyone.
All articles by Clément Wardzala.

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