Poly Network Reverse Hack

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Poly Network were a part of one of the most bizarre hacks ever. Poly Network recently announced that a hacker had stolen around $600m worth of various cryptocurrencies. But they were soon returned. All of the stolen funds, save for assets frozen in the immediate aftermath of the hack.

“At this point, all the user assets that were transferred out during the incident have been fully recovered. Thanks to Mr. White Hat’s cooperation, Poly Network has officially entered the fourth phase of our roadmap ‘Asset Recovery.’ We are in the process of returning full asset control to users as swiftly as possible,”

“Once again, we would like to thank Mr. White Hat for keeping his promise, as well as the community, partners and the multiple security agencies for their assistance.”

Poly Network, a decentralised finance (DeFi) platform, wrote in a blog post.

Poly Network said that an unknown hacker had exploited vulnerabilities in it’s platform and stolen the cash in one of the largest cryptocurrency heists in known history. But what makes this story bizarre is that the company pleaded with the hacker in an open letter. They addressed them as “Dear Hacker” and the digital burglar strangely announced that they’d return the cryptocurrency.

Poly Network promised the hacker, who they addressed as “Mr White Hat” after they posted missives to the blockchain. Claiming to be a good actor who was helping the Poly Network, as they found a vulnerability. A reward of $500,000. So, even after offering them a cash reward they offered them a position as “Chief Security Advisor”.

The hacker had stolen funds from a sleuth of cryptocurrency chains. Such as Ethereum Blockchain, Binance Smart Chain and the Polygon Blockchain. While the only funds that weren’t returned yet, according to the Poly Network, are $33M in Tether Stablecoins. Which were frozen by the company that manages them.

Still In Trouble?

However, the hacker has now returned the proceeds of their heist. But, it’s possible the FBI will still go after them. An FBI spokesperson said that the bureau “is aware of the situation and has no further comment to offer.”

Furthermore the hacker has since announced that they were also returning the $500,000 bounty from the Poly Network. The hacker wrote in a message

“KEEP CALM AND THIS IS THE HAPPY ENDING! I HAVE TO ADMIT THAT MY WILD OR MAD BEHAVIORS HAVE LED CRISES TO YOUR PROJECT, YOUR TEAM AND EVEN YOUR LIVES,”  to the Poly Network. “I’M QUITTING THE SHOW. BELIEVE IT OR NOT, I HAVE NEVER CONSIDERED THE SHARED WALLET AS THE ‘HOSTAGE’ FOR RANSOM. AS YOU MAY HAVE NOTICED, I HAVE POURED YOUR BOUNTY AND MY COMPENSATION FUND FROM DONATIONS INTO THE SHARED MULTISIG WALLET.” 

“YOUR CHIEF SECURITY ADVISOR.” 

(Vice)

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