Poloniex Back in Action: Operations Restarted Post Breach
In recent updates, Poloniex has reported the reinstatement of its deposit and withdrawal services subsequent to an intrusion into its hot wallets.
As disclosed in a statement on November 15, the exchange addressed the breach that occurred on November 10, where an unidentified entity gained access to one of its hot wallets and transferred digital assets valued at over $100 million, predominantly Ethereum (ETH).
The unauthorized movement of funds was notably utilized to artificially inflate the value of the Tron blockchain’s native TRX token, triggering suspicions of internal involvement.
Justin Sun, the owner of the exchange, acknowledged the ongoing investigation into the breach but refrained from divulging intricate specifics about the nature of the theft. However, an incentive of 5% of the pilfered funds was extended to the perpetrator should they opt for restitution.
Recent developments from Poloniex indicate substantial progress in the restoration of affected wallets, facilitating the normalization of platform operations.
Addressing concerns regarding deposit and withdrawal services, Poloniex conveyed, “We are pleased to inform you that significant strides have been made in the restoration process, resulting in the smooth functioning of the platform.”
Simultaneously, the company has enlisted the expertise of an undisclosed “top-tier” security firm to fortify the security measures surrounding user funds. Ongoing security audits persist, with intentions to promptly reinstate deposit and withdrawal services upon their completion.
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As of the latest update, Poloniex has not responded to inquiries from CryptoSlate seeking additional commentary. Public details regarding the reimbursement plan for affected users remain undisclosed. Nevertheless, Justin Sun previously reassured the community about Poloniex’s financial stability, assuring full reimbursement for affected funds.
Furthermore, Poloniex isn’t the solitary exchange associated with Sun to encounter security breaches recently. In September, HTX faced a compromise resulting in a loss of $7.9 million. Interestingly, the perpetrator returned all misappropriated assets to the platform.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
