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Poly Network Suspends Operations After Exploit, Urges Assistance and Liquidity Withdrawal

2 mins
Updated by Kyle Baird
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In Brief

  • Poly Network temporarily suspends operations after a second hack following the 2021 exploit.
  • Hackers exploited the Poly Network cross-chain transport protocol to mint $34 billion worth of assets.
  • The cyberattack highlights the growing threat, emphasizing the need for robust cybersecurity measures.
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Cross-chain DeFi platform Poly Network has suspended operations for the time being following a second exploit. In a statement released to users, the platform requested assistance while urging users to expedite liquidity withdrawal.

The attack has affected 57 assets across ten blockchains, with most assets held by around 125 addresses.

Poly Network Hack: Suspend Operations and Call in the Authorities

The platform tweeted that it has initiated communication with centralized exchanges and law enforcement agencies for assistance. Poly Network said,

“We hope that the attacker will cooperate and return the user assets to avoid any potential legal consequences.”

As a precautionary measure, the platform has advised project teams to withdraw liquidity from decentralized exchanges promptly.

“We also strongly advise users who hold the affected assets to expedite the process of withdrawing liquidity and unlocking their LP tokens,” the platform stated.

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The exploit involved hackers taking advantage of the Poly Network cross-chain transport protocol. They minted a staggering $34 billion worth of assets across multiple chains.

However, BeInCrypto previously noted that the hackers might face difficulties cashing out their ill-gotten gains. This is mostly due to insufficient liquidity on the Metis Ethereum Layer-2 network.

Changing Nature of Cyber Threats

This is not the first time Poly Network has faced a significant attack. In August 2021, the platform was targeted on the Binance, Ethereum, and Polygon networks, resulting in around $600 million theft.

However, the hacker, dubbed ‘Mr. White Hat,’ returned most of the stolen funds.

The most recent cyberattack on Poly Network demonstrates the growing danger posed by hackers, who are getting more organized and resourceful. The U.S. Commodity Futures Trading Commission’s (CFTC) Commissioner Christy Goldsmith Romero recently warned about hackers hiding in countries including China, Russia, North Korea, and Iran.

As evidenced by the recent attack on Atomic Wallet, which led to the theft of about $35 million, these hackers take advantage of security flaws.

The event serves as a reminder of the necessity of strong cybersecurity measures in light of the changing nature of online threats.

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Shraddha Sharma
Shraddha is an India-based journalist who worked in business and financial news before diving into the crypto space. As an investment enthusiast, she has also has a keen interest in understanding crypto from a personal finance standpoint.
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