HomeSecurity OperationsPoloniex hacker laundered more than 60% of stolen funds in a week

Poloniex hacker laundered more than 60% of stolen funds in a week

Published on

spot_img

A hacker responsible for the attack on Poloniex in late 2023 has managed to successfully launder over $66 million of the $100 million stolen from the exchange through the use of a mixing protocol called Tornado Cash. Despite being allegedly identified by the Poloniex team shortly after the attack, the hacker was able to evade consequences and launder a significant portion of the stolen funds within just one week in early May.

According to blockchain intelligence firm PeckShield, the most recent transaction involving the stolen funds included over 4,400 ETH, valued at approximately $12.8 million, being sent to Tornado Cash. This brings the total amount of laundered funds to 22,200 ETH, valued at around $66.3 million. Despite Poloniex’s warnings that the stolen funds would be frozen, there have been no public indications that the exchange has been successful in retrieving the funds or preventing further laundering.

In response to the attack, Poloniex offered the hacker a $10 million bounty for the return of the stolen funds and threatened to involve law enforcement from multiple countries if the hacker refused to cooperate. However, the hacker was able to bypass these warnings and launder a significant portion of the stolen funds, raising concerns about the exchange’s security measures and ability to prevent future attacks.

As reported by crypto.news, Poloniex’s listing data reveals signs of a partially abandoned platform, with over 500 trading pairs showing no trading volume. Approximately 53% of all listed pairs on the exchange had negligible or zero daily trading activity as of May 13, raising questions about the overall health and activity of the platform.

In a statement to crypto.news, a Poloniex spokesperson attributed the lack of trading activity on some pairs to price fluctuations, stating that asset prices can vary and lead to differences in trading volume. However, the spokesperson did not provide a definitive explanation for why so many trading pairs on the exchange showed no daily trading activity at all.

The situation surrounding the Poloniex hack and the laundering of stolen funds highlights the ongoing challenges and risks associated with centralized cryptocurrency exchanges. Despite efforts to identify and address security vulnerabilities, hackers continue to find ways to exploit weaknesses in exchange platforms, raising concerns about the safety and security of users’ funds.

As the investigation into the Poloniex hack and money laundering continues, it remains to be seen what steps the exchange will take to improve its security measures and prevent future attacks. In the meantime, users are advised to exercise caution when trading on cryptocurrency exchanges and to take necessary precautions to protect their digital assets from potential threats.

Source link

Latest articles

AI, Deepfakes, and Digital ID in Corporate Cybersecurity: Exploring the Emerging Frontier

The emergence of deepfakes has sparked a new wave of concern in the cybersecurity...

The Challenge of CVE Incentives

In the realm of cybersecurity, the issue of software vulnerabilities is becoming increasingly challenging...

Nearly 44,000 affected by First American data breach

First American Financial Corporation faced a significant data breach in December, leading to the...

Desperate Cybercrime Fighters Call for a Ban on Ransomware Payments, Reports Bloomberg

Cybersecurity experts are increasingly urging governments and organizations to ban ransomware payments in an...

More like this

AI, Deepfakes, and Digital ID in Corporate Cybersecurity: Exploring the Emerging Frontier

The emergence of deepfakes has sparked a new wave of concern in the cybersecurity...

The Challenge of CVE Incentives

In the realm of cybersecurity, the issue of software vulnerabilities is becoming increasingly challenging...

Nearly 44,000 affected by First American data breach

First American Financial Corporation faced a significant data breach in December, leading to the...
en_USEnglish