Poloniex, a cryptocurrency exchange platform under the ownership of Justin Sun, the founder of Tron, has recently experienced a significant security breach. This incident led to the unauthorized transfer of more than $126 million in various digital assets from one of its wallets. The suspicious activity was initially detected by Peckshield, a blockchain security company.
Hi @Poloniex, you may want to take a look: @justinsuntron https://t.co/UobItZ9FpO
— PeckShield Inc. (@peckshield) November 10, 2023
According to the data available on the blockchain explorer Etherscan, the “Poloniex 4” wallet was compromised, and a range of cryptocurrencies, including Ethereum (ETH), Tron (TRX), stablecoins such as Tether (USDT) and TrueUSD (TUSD), and meme coins like PEPE, FLOKI, and SHIB, were transferred to the hacker’s wallet.
The security breach was not confined to the Ethereum blockchain. Additional data gathered by Arkham Intelligence indicates that the hacker also managed to steal over 288 million of Tron’s native tokens (TRX) and 865 Bitcoin. These additional thefts bring the total value of the stolen assets to over $126 million.
Justin Sun Addressed the Situation, Via X
In response to the incident, Justin Sun, the owner of Poloniex, has offered a 5% reward to the hacker. Sun has given the attacker seven days to return the funds before they begin working with law enforcement authorities.
Sun also took to Twitter to address the situation. He confirmed that an investigation into the Poloniex hack was underway. He reassured users that the exchange remains financially stable and promised to compensate for the lost funds. Furthermore, he mentioned that Poloniex is working in conjunction with other exchanges to expedite the recovery of the stolen assets.
This is not the first time Poloniex has been targeted. In 2020, two people were charged in the U.S. for allegedly using a sophisticated market manipulation scheme to defraud and steal $17 million in bitcoin and ether from users of three cryptocurrency exchanges worldwide, including Poloniex.
In August 2021, the Securities and Exchange Commission announced that Poloniex LLC agreed to pay more than $10 million to settle charges for operating an unregistered online digital asset exchange.
The recent hack underscores the importance of robust security measures in the rapidly growing cryptocurrency market. It serves as a stark reminder to all investors and traders about the potential risks associated with digital assets. As the investigation continues, the crypto community will be watching closely for updates and hoping for a swift resolution to this unsettling incident.
