What is Poly Network?
Poly Network is a lesser-known name in the world of cryptocurrencies. Poly Network is a decentralized finance (DeFi) platform that allows users to transfer or swap tokens across different blockchains as well as facilitate peer-to-peer transactions.
It was not immediately clear from the Poly Networks website where the platform is located or who runs it. According to specialist crypto website Coindesk, Poly Network was launched by the founders of the Chinese blockchain project Neo.
How did hackers steal the tokens?
The Poly Network works on the Binance Smart Chain, Ethereum and Polygon blockchains. Tokens are swapped between blockchains using a smart contract that contains instructions on when to issue assets to counterparties. The price of Ethereum in India as of 12 PM IST on 13th August was Rs 2.4 Lakhs.
According to crypto intelligence firm CipherTrace, one of the smart contracts used by the Poly Network to transfer tokens between blockchains holds a large amount of liquidity so that users can efficiently swap tokens.
Poly Network tweeted on Tuesday that preliminary investigations found that hackers took advantage of a breach in the smart contract.
According to an analysis of the transaction tweeted by Ethereum programmer Calvin Feicher, the hackers overrode the contract instructions for each of the three blockchains and sent funds to the three wallet addresses, the digital location to store the tokens. These were later discovered and published by Pauli Networks.
According to blockchain forensics company Chainalysis, hackers stole money in more than 12 different cryptocurrencies, including ether and a type of bitcoin.
According to digital messages posted on the Ethereum network published by Chainalysis, a person claiming to have hacked said they had seen a “bug” without specifying, and that they wanted to “expose a penetrating point” before that. that others can take advantage of it. Reuters could not confirm the authenticity of these messages.
Where did the money go?
Poly Network said that as of late Wednesday, the hackers had returned assets worth $342 million (about Rs 2,540 crore), but $353 million (about Rs 2,620 crore) was owed. Where the rest of the property went is not clear.
Coindesk reported on Tuesday that hackers attempted to transfer assets, including Tether tokens, from one of three wallets to liquidity pool Curve.fi, but that transfer was rejected. Coindesk also reported that around $100 million (approximately Rs 740 crore) was withdrawn from another wallet and deposited into liquidity pool Ellipsis Finance.
Curve.fi. And Ellipsis Finance could not be immediately reached for comment.
Who is the hacker?
The hacker or hackers are yet to be identified.
Cryptocurrency security firm SlowMist said on its website that it has identified the attacker’s mailbox, Internet Protocol address and device fingerprint, but the company has not yet named anyone. SlowMist said the robbery was carried out under “a long-planned, organized and prepared attack.”
Chainalysis’s chief technology officer and former FBI veteran Gurvais Grieg said it was unlikely white hat hackers would steal such a huge amount. He said that he had probably returned some of the money as he found it very difficult to convert it into cash.
“It’s hard to know what inspired them… Let’s see if they refund the full amount,” he said.