• Mon. Apr 22nd, 2024

Justin Sun’s Poloniex Announces Comeback After Overcoming $100M Hack

Xavier Jackson

ByXavier Jackson

Nov 15, 2023

Cryptocurrency exchange Poloniex, under the leadership of Justin Sun, is set to resume its operations following a significant security breach that occurred on November 10th, resulting in a loss of over $100 million. 

The official announcement made today confirmed that after extensive efforts to secure and upgrade the platform, Poloniex is now operating smoothly and is focusing on reinstating deposit and withdrawal services for its users.

Restoration of Services Post-Hack

Following a significant security breach on November 10th, which led to a loss of over $100 million, Poloniex, a cryptocurrency exchange owned by Justin Sun, is preparing to resume operations. The official announcement today confirmed that substantial progress has been made in restoring the platform’s services. 

Currently, Poloniex is operational and is focusing its efforts on bringing back core services like deposits and withdrawals. This marks a significant recovery step since the incident, showcasing the exchange’s commitment to swiftly addressing the challenges posed by the hack.

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Enhanced Security Measures

In response to the breach, Poloniex has taken rigorous steps to increase the security of its platform and protect user funds. The exchange has enlisted the expertise of a renowned security auditing firm to thoroughly assess and bolster its security framework. 

This evaluation process, crucial for ensuring the safety of the platform, is in its final stages and is expected to be completed shortly. Poloniex emphasizes that these enhancements are central to its efforts to provide a more secure and resilient service.

The Poloniex exchange, owned by Justin Sun, experienced a severe security breach, leading to a substantial loss of about $126 million in cryptocurrency assets. The attack targeted Poloniex’s hot wallet, a type of wallet connected to the internet for quick fund access, allowing the hackers to siphon off significant amounts of digital assets. 

The breach was initially detected by blockchain security firm Peckshield, which observed suspicious transfers from the “Poloniex 4” wallet to external accounts linked to the hackers. Further analysis by Arkham Intelligence revealed the theft of over 288 million in TRX (Tron’s native token) and 865 Bitcoins, culminating in the staggering total loss.

Market Impact and Justin Sun’s Response

In an unusual turn of events, the hacker conducted transactions that led to a noticeable spike in TRX’s value. By purchasing $20 million worth of TRX, the hacker managed to drive the token’s price up by over 20%, an anomaly especially given the context of the hack. 

Following the attack, Sun, who acquired Poloniex in 2019, promptly addressed the situation. He assured that the exchange, maintaining a strong financial standing, would fully reimburse the affected users. Furthermore, Sun extended a 5% white-hat bounty to the hackers, incentivizing the return of the stolen assets with a bug bounty offer.

Xavier Jackson

Xavier Jackson

Xavier Jackson is a talented and versatile news writer with a knack for delivering compelling stories. With a dedication to accurate reporting and a captivating writing style, his articles provide readers with insightful and thought-provoking perspectives on current events.

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