Encrypted network says hackers stole $600 million in digital tokens

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Cryptocurrency update

A decentralized financial network claims that hackers absconded about $600 million worth of cryptocurrency in one of the largest robberies in the fast-growing digital asset industry.

Poly Network, which connects to some of the most widely used digital ledgers in the world, said on Tuesday that attackers exploited a vulnerability in its system and obtained thousands of encrypted tokens.This attack will be one of the biggest crypto risk attacks to date, on par with major violations including exchanges Coin check and Gox, mt..

The so-called hacking marks a blow to supporters of decentralized finance or DeFi, which has been one of the fastest growing areas of the cryptocurrency market. It also highlights the lack of protection for consumers and investors in the booming market in recent years, while financial regulators have only slightly supervised them.

Poly Network has developed a computer protocol or set of rules that allows users to transfer tokens bound to a blockchain to a different network. Many of the most widely used blockchains in the world, such as Binance Chain and Ethereum, are independently developed. Their tokens serve as incentives for users and run on different technologies.

However, this means that investors cannot easily transfer their tokens to a different blockchain, trade them or use them as collateral for another investment.

Proponents are trying to build a network that allows users to directly buy and sell digital assets with each other, bypassing intermediaries that may charge fees, such as exchanges or clearing houses. Many projects aim to be completely decentralized.

The network stated that hackers allegedly exploited a loophole in Poly Network’s “contract call,” a type of test that is not intended to be published on the blockchain to access the ledger and transfer funds out.

According to the wallet address released by Poly, the value of these tokens was approximately US$600 million before the news of the suspected hacking attack, including US$270 million on the Ethereum blockchain and US$250 million on the Binance Smart Chain. And $84 million on the Polygon network. The network on Twitter.

Etherscan stated that hackers stole altcoins such as Binance Coin and Ethereum, as well as dozens of smaller tokens, including Shiba Inu, Matic, and Uniswap. The dollar value of the stolen token fell to 394 million US dollars, as news of it spread and investors sold some cryptocurrencies, thereby hitting the price of the tokens.

Poly Network is calling on groups called “miners” (handling transactions) and centralized cryptocurrency exchanges to help prevent transfers. “We will take legal action and urge hackers to return their assets,” it said.

Binance CEO Changpeng Zhao stated that his company is aware of this incident. He said that although “no one controls” Binance’s blockchain, the organization is “coordinating with all our security partners to actively help. There is no guarantee. We will do our best.”

Paolo Ardoino, chief technology officer of stablecoin company Tether, stated that the organization has frozen tokens worth approximately $33 million, which are located on the Poly Network. According to Etherscan, a large portion of USD Coin is also operated by the payment service company Circle. Circle did not immediately respond to a request for comment.

Earlier this month, Gary Gensler, chairman of the US Securities and Exchange Commission, the US market regulator, called on lawmakers to give regulators More power Protect investors from illegal activities on the DeFi platform.

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