Poloniex Cryptocurrency Exchange Suffers Suspected $100M Security Breach; Tron (TRX) Price Rises
Summary:
A digital wallet linked to cryptocurrency platform Poloniex reportedly experienced suspicious outflows, drawing suspicion of a security breach. The hacking led to an approximate loss of $100 million in cryptocurrency. Initial calculations estimated the value at around $60 million, but subsequent investigation by security agencies suggests a case of 'private key compromise.' Amid speculations, Poloniex disabled the wallet but has not given an official statement about the breach. Justin Sun, the exchange's owner, assured full reimbursement to affected users and initiated investigations into the incident. Despite the setback, Sun's other cryptocurrency project, Tron (TRX), saw a 20% increase in value.
A cryptocurrency wallet under the purview of the digital currency platform Poloniex seems to have experienced questionable outflows as shown by the data monitoring tool Etherscan. Blockchain security establishments suspect the firm was targeted in a breach, resulting in an estimated $100 million in digital currency swindled by the aggressors. November 10th saw vast amounts of digital currency moved from an account tagged as Poloniex 4 on Etherscan. The initial projection of the loss was near to $60 million, but subsequent calculations by the blockchain security agency CertiK indicated it could be a case of "private key compromise." Additionally, the company disclosed that the funds have been directed to four independent owner accounts (EOAs), with a proportion being converted into Ether (ETH). Suspicions are high that .@Poloniex was infiltrated illegally. Poloniex's address '0xA910' transferred all tokens to a different address '0x0A59' within 40 minutes, amassing an estimated value of nearly $60 million. Currently, '0x0A59' is in the process of moving funds to numerous addresses and converting them to ETH.
Following the vague outflows, the platform disabled the wallet in question. To date, an official communication about the breach remains absent from the platform. Cointelegraph reached out to Poloniex but received no immediate feedback. Justin Sun, the exchange's buyer in 2019, revealed on X (formerly Twitter) that an investigation into the hacking incident is underway. Sun also claimed that they are in a strong financial position and are exploring alliances with others to recover the missing assets. He committed to full reimbursement for the users impacted by the breach. Sun also proposed a 5% reward for the person returning the stolen assets and warned the hackers they have seven days before law enforcement is involved.
In spite of the setback, Tron (TRX), another one of Sun's digital currency projects, reported a 20% hike in price according to CoinGecko, a digital asset tracker. The same day as the hack, the cryptocurrency's trading price rose from $0.09 to $0.11.
Published At
11/10/2023 12:52:20 PM
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