- November 16, 2023
- Posted by: [email protected]
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Cryptocurrency exchange Poloniex has unveiled plans to resume its services after experiencing a significant hack resulting in losses exceeding $100 million. On November 15, the exchange announced the completion of restoration efforts post-hack and outlined its intention to recommence deposit and withdrawal services. In a bid to ensure user safety, Poloniex will implement additional security measures and has engaged a leading security audit firm to assess and verify the platform’s safety protocols.
The exchange assured its user base that the final stages of the security audit and verification processes were underway, and upon their completion, deposit and withdrawal services would promptly resume. Although ongoing evaluations may extend for several days, the Poloniex team is committed to informing users of any new developments in due course.
Social media reactions from crypto users commended the rapid response of the Poloniex team following the hack. However, there were widespread calls for caution before relaunching to mitigate the risk of subsequent attacks. Justin Sun, who acquired the exchange in 2019, offered assurances that all lost funds would be recovered, pledging a thorough investigation and a commitment to transparency.
Blockchain security firm PeckShield flagged multiple transactions from the exchange’s wallet on November 10, resulting in estimated losses exceeding $100 million. While the primary cause of the breach remained unclear, some firms pointed to a compromise of private keys. The hackers executed various transactions through multiple accounts to swap the stolen assets.
Promptly responding to the incident, Poloniex deactivated the compromised wallet and announced a temporary halt to major activities, initiating an investigation into the matter. Sun emphasized the exchange’s sound financial position, vowing to reimburse every affected user and initiating the recovery process in collaboration with other digital asset exchanges.
Despite the negative impact of the hack on the industry, crypto users called for heightened scrutiny across exchanges, decentralized applications, and networks. Justin Sun also introduced a 5% white-hat bounty, offering hackers a seven-day window to return stolen assets before involving law enforcement.
