Hackers return $260 million to crypto platform Poly Network after massive theft

In what is believed to be one of the largest cryptocurrency thefts ever, hackers have returned roughly half of the $600 million they took.

A loophole in Poly Network, a platform that aims to connect multiple blockchains so that they may operate together, was exploited by cybercriminals.

Poly Network informed the hackers of the incident and requested that they communicate with them, encouraging them to return compromised assets.

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 rest.

Poly Network promises to be able to connect all of these different blockchains.

Poly Network is a platform for decentralised 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 andexchanges. It's known as decentralised.

pic.twitter.com/Yzw4oDenjC — Poly Network (@PolyNetwork2) August 10, 2021

"There`s so much public attention on this, and exchanges will be on the lookout for customer deposits linked to this theft," Elliptic's Robinson said.

"This demonstrates that even if you can steal cryptoassets, laundering them and cashing out is extremely difficult, due to the transparency of the blockchain and the broad use of blockchain analytics by financial institutions."

The hacker or hackers sent a message with some of the returned coins appearing to ask for donations, Robinson added.

The stolen funds amount to more than the criminal losses registered by the entire DeFi sector from January to July of a record $474 million, according to a report from crypto intelligence company CipherTrace.

Proponents of DeFi say it offers people and businesses free access to financial services, arguing that the technology will cut costs and boost economic activity.

Yet it is mostly unregulated, with technical flaws and weaknesses in the code many platforms use, leaving it vulnerable to hacks and heists.

An executive from Tether - a stablecoin or type of cryptocurrency usually backed by real-world world assets - said on Twitter the company had frozen $33 million connected with the hack, and top management at large crypto exchanges responded to Poly Network saying they would also try to help.

(With inputs from agencies)