Justin Sun’s Poloniex To Resume Operations After $114 Mln Hack

Justin Sun’s cryptocurrency exchange Poloniex to resume its deposits and withdrawals in the upcoming week after the major hack. As per the announcement, the security team is still working on the patches and checks.

The official X account also mentioned that the operations will go live followed by a comprehensive wallet update. The firm strictly asks users to not make any deposits during the update as it could lead to financial losses.

Poloniex CEO Justin Sun in an X post confirmed that numerous wallets were compromised during the hack, with around $114 Mn in funds stolen. Meanwhile, a 5% whitehat bounty was also promised to be given if the hacker released the funds.

Poloniex Freezes Attacker’s Funds

Peckshield Inc. a blockchain security firm is right now investigating the hack. Poloniex officials have made the confirmation that the attacker’s address has been detected and the funds are frozen and can’t be moved across other financial parties.

Additionally, Poloniex warned the hacker to return all the funds before November 25, 2023. If not, then legal action would be taken with the help of authorities of multiple countries.

The confirmation on the exploiter came as Justin Sun made some transactions of $0.10 to all the phony wallets carrying the same messages of the attacker’s identity confirmation. In a statement, the exchange has confirmed that it has “mostly completed” its restoration efforts following the $100 million theft.

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About Poloniex Hack

On November 10, Poloniex experienced a catastrophic security breach, with attackers taking more than $100 million in cryptocurrencies from the exchange.

After detecting the abnormal outflows, the Poloniex team disabled the wallet. CertiK, a blockchain security firm, believes the event was most likely a “private key compromise.”

Furthermore, the attackers stole 3.1 million XRP and 577 billion Shiba Inu (SHIB). Poloniex froze withdrawals but assured consumers that the losses would be covered. A week later, the exchange said that deposits and withdrawals would be resumed in the coming week.

Earlier in 2023, Poloniex agreed to pay a $7.6 million settlement to the US Treasury Department’s Office of Foreign Asset Control in connection with more than 65,000 suspected violations of different sanctions programs. For the time being, Poloniex is one of the most old crypto exchanges right back from 2013.

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