Cybercriminals swipe digital currencies and subsequently return the ill-gotten funds to our platform.
August 12, 2021
In an unprecedented turn of events in the world of crypto crime, hackers who stole approximately $600 million worth of cryptocurrencies from the cross-chain decentralized finance (DeFi) platform, Poly Network, have returned most of the funds following negotiations.
The heist, which occurred in 2021, involved the theft of around $610 million in assets from Poly Network. Despite the records and blockchain transparency that allowed tracking of the stolen funds, the hackers initially withdrew a huge volume of assets.
However, over time, due to negotiations with the Poly Network team, the majority of the stolen funds were returned to the protocol. This restitution was facilitated by the immutable blockchain ledger which helped in monitoring the assets.
The numbers of these hacker wallets are known, but the identities of their owners remain unknown. Tether froze $33 million worth of cryptocurrencies from the hacker wallets, and Poly Network provided its own wallet addresses for the criminals to return the cryptocurrencies.
Units worth $342 million have been returned, including Ethereum ($4.6 million), Binance Smart Chain ($252 million), and Polygon ($85 million). The company announced the theft via Twitter and advised users to check their spam folder if they are not receiving the email.
Law enforcement agencies worldwide continue to consider the theft an economic crime. The theft affected tens of thousands of customers and the theft of cryptocurrencies from Poly Network is being monitored by operators of other platforms.
While the hackers remain anonymous, they have returned most of the stolen funds after negotiations, a notable case in crypto crime where large-scale assets were largely recovered.
Insurance companies are now assessing the potential risks and losses related to the recent cybersecurity breach at Poly Network, considering the returned funds a significant factor in their calculations.
The incident serves as a reminder that despite the advancements in technology, general-news outlets should still report on crime-and-justice issues related to cybersecurity and digital assets, including incidents like the Poly Network hack.
