Poloniex Exchange Hit by $120M Hack After Security Breach


November 10, 2023


Gabriel Negrín

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A security breach targeting one of Poloniex's wallets—known as Poloniex 4 on Etherscan—has affected the well-known centralized cryptocurrency exchange. Analysts estimate that the event affected about $120M in outflows, and an ongoing investigation indicates that the incident affected a significant portion of its funds.

Poloniex did not confirm the financial effects of the incident. However, it did mention deactivating its wallet for maintenance. It promised to notify its users as soon as the wallet is operational again.

After the event, Sun promised a thorough inquiry into the situation and reaffirmed his intention to compensate impacted users.

Poloniex, acquired by Tron founder Justin Sun in 2019, has been operating since 2014. Following the event, Sun promised an in-depth investigation and stated his intention to reimburse affected users.

Sun responded on Twitter, saying, "We are currently investigating the Poloniex hack incident. Poloniex maintains a healthy financial position and will fully reimburse the affected funds."

Sun has given a 5% whitehat bounty to the attacker to get a total fund return, with a seven-day time limit before pursuing legal action with law enforcement agencies.