March 27, 2024
Poloniex's Unconventional Gamble: A $10 Million Bounty to Hacker for Stolen Crypto
Latest Cryptocurrency News

Poloniex’s Unconventional Gamble: A $10 Million Bounty to Hacker for Stolen Crypto

In the aftermath of a recent hack targeting Poloniex, a prominent cryptocurrency exchange, the platform has taken a unique approach to address the situation. The exchange claims to have identified the hacker responsible for pilfering over $100 million in digital assets from one of its wallets. In an intriguing move, Poloniex is extending an offer to the perpetrator, providing an opportunity to return the ill-gotten funds in exchange for a substantial $10 million bounty.

The revelation came to light through an on-chain message shared on social media by PeckShield, a blockchain security firm. According to Poloniex, it has not only confirmed the hacker’s identity but is also collaborating with law enforcement agencies in the United States, Russia, and China to address the incident.

Despite asserting that the stolen funds are now marked and rendered unusable, Poloniex is affording the hacker a window until November 25 to return the assets voluntarily. In a gesture akin to a “white hat” reward, the exchange has offered a $10 million bounty for the safe return of the funds. However, a stern warning accompanies this proposition: if the assets are not returned by the specified deadline, law enforcement agencies will intervene.

While Poloniex maintains that it has identified the hacker, some members of the cryptocurrency community express scepticism. A user on social media, formerly known as Twitter, questioned the need for the involvement of police from three different countries and the issuance of the same message in 15 different languages if the hacker’s identity is already known.

The cyberattack on Poloniex transpired in early November when a crypto wallet associated with the exchange experienced suspicious outflows. Several blockchain security firms confirmed that the breach resulted in a loss exceeding $100 million. In response, Poloniex swiftly disabled the compromised wallet for maintenance and offered a 5% bounty as an incentive for the return of the funds. Subsequently, on November 15, the exchange resumed withdrawals after enlisting the assistance of a security auditing firm to bolster its overall security measures.

The unique approach taken by Poloniex, combining identification efforts with a bounty offer and a warning of potential legal consequences, showcases the evolving dynamics and challenges in the cryptocurrency space, particularly when dealing with cybercrime and security breaches.

Image: Wallpapers.com

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