Home - Bitcoin - Why do Hackers Return $260 Million to Cryptocurrency Platforms After Massive Theft?

David Agullo

August 19, 2021

Why do Hackers Return $260 Million to Cryptocurrency Platforms After Massive Theft?

Cryptocurrency News – Last Wednesday, the company at the center of one of the greatest cryptocurrency heists in history claimed that hackers had returned more than a third of the $613 million in digital tokens they had stolen. Poly Network, a decentralized banking network that facilitates peer-to-peer transactions, has announced the return of $260 million in stolen funds. However, $353 million went unclaimed.

A blockchain is a digital ledger that serves as the foundation for multiple cryptocurrencies. Each digital coin has its blockchain, which is distinct from the rest. Poly Network claims to be able to connect all of these different blockchains.

What was the hacker’s method for stealing $610 million from Poly Network?

 The hacker claims to have discovered a security flaw in Poly Network’s usage of tokens, or “smart contracts,” to trade cryptocurrencies, as revealed by Kelvin Fichter, a blockchain developer, in a tweet thread.

Poly Network is a cross-chain network that aims to make it easier for users to connect across different blockchains. This is what it means to be. Poly appears to have had a fault that was not discovered until today, an internal instruction that should not have been accessible to anyone outside the organization. Through these bugs and loops, the hacker gets into the system and steals the money.

The whole incident seemed to be more of a warning and an alert segment. A lot of things can be deduced from the q ad they had with Poly:

Checking up with the vulnerability

“Expose the flaw” has been the main motive of the system has been the main motive of the hackers. It was done to check and at the same time challenge the credibility of the system.

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A person claiming responsibility for the breach said they did it “for pleasure,” according to digital messages of Elliptic. They sought to “expose the flaw” before others could make use of it.

The accused hacker wrote that returning the tokens was “always the goal.” “Money does not interest me,” she adds. The thief is not yet known, and Reuters could not verify the authenticity of the messages.

Slowing transactions back

While millions of dollars in digital assets remained missing as of Wednesday evening, the hacker claimed that they were being returned slowly on purpose so that the hacker could protect their identity and take a break.

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Unveiling the Poly secret

The hacker claims not to be “evil” in a four-part question and answer series they attached to their transactions as comments while returning the funds. He only took such harsh measures because he was afraid the Poly Network team would repair the problem without alerting everyone.

More of a warning call

According to their claims, the hacker took possession of the money to keep it safe. They noticed a flaw that might be used to steal millions of dollars. It concluded that no one could be trusted with the information. They argue in their Q&A that the vulnerability had to be discovered before an insider could hide or profit from it.

Defi platforms allow parties to execute transactions directly without the use of traditional gatekeepers such as banks. Over the industry has exploded over, with platforms currently managing more than $80 billion in digital currency.

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Defi proponents claim that it provides free access to financial services to individuals and businesses and that the technology would reduce expenses and boost economic activity. But technical flaws and weaknesses in their computer code can make them vulnerable to hacks.