Biggest Heist in The History as Hackers Steal $600 Million in Cryptocurrency

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Image Source: worldnewswhere

Hackers stole nearly $600 million in bitcoin from a system known as PolyNetwork, which allows users to trade tokens across different blockchains, in what is possibly the largest crime in the history of decentralized finance.

Hackers took advantage of a flaw in Poly Network, a technology that aims to connect several blockchains so that they may collaborate. The attack has impacted tens of thousands of users, according to a letter shared on Twitter by PolyNetwork. Tether’s issuer has frozen around $33 million of the stablecoin Tether that was part of the heist, rendering it inaccessible to the attacker.

A blockchain is a digital record that serves as the foundation for numerous cryptocurrencies. Each digital coin has its own blockchain, which is distinct from the others. PolyNetwork promises to be able to connect all of these different blockchains. PolyNetwork is a platform for decentralized money. DeFi is a wide word that refers to a range of financial applications based on blockchain technology that aim to eliminate middlemen like brokerages and exchanges. As a result, it’s known as decentralized. This, according to proponents, can make financial applications such as lending and borrowing more efficient and less expensive.

After stealing the funds, the hackers began sending them to other bitcoin addresses. According to researchers at the security firm SlowMist, more than $610 million in bitcoin was moved to three distinct locations. SlowMist, a security researcher, said on Twitter that it has discovered the attacker’s email, IP address, and device fingerprints. This is likely to be a long-planned, orchestrated, and premeditated attack, it continued. Binance Chief Executive Officer Changeng Zhao announced on Twitter that crypto exchanges, including Binance, are assisting PolyNetwork.

Image Source: Times of India

According to Tom Robinson, co-founder of Elliptic, the hacker has begun to use decentralized exchanges to transfer the stolen funds into other assets, including stablecoins. Tokens like stablecoins can theoretically be taken by their issuers, resulting in their restoration to their rightful owners. This is not feasible with the stolen Ether; however, it may be possible if the money is moved to a controlled exchange to be cashed-out.

DeFi apps have been regular targets of assaults as a result of their garnering billions in investor cash. According to bitcoin compliance firm CipherTrace, DeFi-related thefts totaled $361 million from January to July, up nearly thrice over the same period last year. Fraud connected to DeFi is also on the rise. They accounted for 54% of overall crypto fraud volume in the first seven months of this year, compared to 3% for the entire previous year. According to DeFi Pulse, around $80 billion is tied up in DeFi apps, making them a tempting target.

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