Stolen $53M Poloniex Ether Missing from Exchange

More than half of the $100 million worth of Ether (ETH) that was stolen from the Poloniex hack in November 2023 has been moved through the privacy protocol Tornado Cash. The hack occurred on November 10, 2023, when unauthorized outflows were recorded in wallets belonging to the crypto exchange Poloniex. Investigations confirmed that over $100 million worth of ETH was lost in the hack. Despite Poloniex identifying the hacker and offering a $10 million bounty, the stolen funds were not recovered.

Blockchain security firm CertiK suggested that the incident was likely due to a compromise of a private key. In response to the suspicious outflows, Poloniex temporarily disabled the compromised wallet. Six months later, it became apparent that the hacker had no intention of returning the stolen funds. Investigation firm PeckShield discovered that more than half of the stolen funds were moved through Tornado Cash, a protocol designed to anonymize assets. The hacker transferred over 17,800 ETH from multiple wallets into a single Tornado Cash address, amounting to around $53.3 million.

Despite the setback, Poloniex resumed operations and allowed users to deposit and withdraw cryptocurrencies. The exchange also enlisted the services of a top-tier security auditing firm to enhance fund security and prevent future hacks. The company stated that they were in the final stages of the security audit and verification process and would resume deposit and withdrawal services once the audit was completed.

Poloniex owner Justin Sun, who acquired the exchange in 2019, pledged to fully reimburse the affected users and stated that the exchange had a strong financial position. He also expressed the intention to collaborate with other exchanges to recover the lost funds.

7 thoughts on “Stolen $53M Poloniex Ether Missing from Exchange

  1. This hack is a stark reminder that investing in cryptocurrencies comes with significant risks. It’s definitely not as secure as some people make it out to be. 😒

  2. Justin Sun’s commitment to fully reimburse affected users and collaborate with other exchanges is admirable!

  3. This incident will only make the crypto industry smarter and more resilient. Together, we’ll overcome any challenge!

  4. The fact that more than half of the stolen funds were moved through Tornado Cash just shows how difficult it is to trace transactions in the crypto world. Criminals have too much freedom.

  5. With leaders like Justin Sun at the helm, Poloniex is in good hands. Trust and transparency are the keys to success!

  6. With a top-tier security auditing firm on their side, Poloniex is stepping up its game! 💪

  7. The hacker may have thought they could remain anonymous with Tornado Cash, but the professionals are always one step ahead! 👊

Leave a Reply