Poly Network hackers ‘create’ and sell $94.51 billion worth of tokens

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  • They minted and sold $94 billion worth of Shiba Inu for 360 ETH, 495 million worth of COOK tokens ($COOK) for 16 ETH and 15 million worth of RioDefi ($RFuel) for 27 ETH.
  • After the hack, the hacker(s)’ digital wallet had over US$43 billion worth of cryptocurrencies.
  • The two successful hacks on the Poly Network have raised eyebrows about the security status of the platform.

Poly Network has kicked off July on the wrong footing after a hacker released billions of tokens into the air through an interoperability platform. Allegedly, the attackers discovered a vulnerability in Poly Network’s cross-chain bridge tool and created an excessive number of tokens that did not exist. They minted and sold 94 billion worth of Shiba Inu for 360 ETH, 495 million worth of COOK tokens ($COOK) for 16 ETH and 15 million worth of RioDefi ($RFuel) for 27 ETH.

Poly Network admitted on their platform about the incident, tweeting:

Dear users, we would like to inform you that Poly Network is temporarily suspending its services due to a recent attack. We actively engage with relevant parties and diligently assess the extent of the affected assets. We also welcome assistance from cybersecurity professionals to support us in resolving this matter. Poly network genuinely appreciate your understanding and assure you that we will promptly update you on the latest developments concerning this incident.

Additionally, the attackers issued over US$100 million BNB and US$10 billion worth of BUSD. About 100 trillion $SHIB was released on the network Heko, while many altcoins were issued on Polygon and Avalanche.

Binance denounce any relation to the hack

Binance CEO Changpeng Zhao has reacted to the hack, stating:

This does not affect Binance users. We do not support deposits from this network. Our security team is assisting them in investigations.

A decentralized finance portfolio tracker, Debank, and Blockchain data and security firm Peckshield confirmed that at one point, the hacker(s)’ digital wallet had over US$43 billion worth of cryptocurrencies after the hack.

Read: A benchmark for blockchain networks: Cyberpunks lose 5, 2.5 ETH in a NEAR Protocol hacking attempt

Despite the magnitude of this attack, the hacker could only convert a small percentage of the funds due to a lack of liquidity on Metis and Binance. They could convert on networks like Ethereum, which took time to block the transactions.

Are blockchain bridges safe?

As much as bridges are an essential part of the Web3 ecosystem to facilitate the transfer of assets from one network to another, they have become a point of attack from hackers. Despite the challenges that the bridges face, they have allowed interoperability within the crypto ecosystem.

Poly Network hack ‘fame.’

Poly Network is better known for the 2021 scam that saw the network lose over US$610 million in digital cryptocurrency. The hacker exploited a vulnerability in Poly Network’s code, allowing them to transfer funds to their wallets.

However, the poly Network hacker returned the funds, except for US$33 million of USDT frozen by its issuers. The platform promised to give the unidentified individual a US$500,000 ‘reward’ for helping them identify a flaw in their systems. They allegedly offered him a job as a chief security advisor.

The two successful hacks on the Poly Network have raised eyebrows on the security status of the platform more than it taints the cryptocurrency network as tainted with opportunists.

Here is a brief description of who Poly Network are for a better understanding of their operations.

Brief description of poly network

Poly Network is a global cross-chain protocol for implementing blockchain interoperability and building Web 3.0 infrastructure. Poly Network has connected over thirty-five blockchains, including Ethereum, Polygon, Arbitrum, and BNB Chain. Others include Aptos, Optimism, Neo, Metis, and Gnosis Chain. Since the launch, the protocol has enabled cross-chain asset transfer of more than US$16 billion.

The total value locked in Poly Network is US$ 176.47 million. The platform has facilitated over 998,411 cross-chain transactions through over 426 193 cross-chain addresses.

Read: Africa’s cash app, BitSika, striving to reach the top

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JOSEPH KANGETHE
JOSEPH KANGETHE
I am a tech, business, and investment news reporter covering Africa. Most of what is good in Africa is obscured by preconceptions, yet there is still a lot of good going on. Technology is what is driving the continent and this is my passion. For Africa, I share the stories that are important to Africans.
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