Poly Network, a prominent decentralized finance platform, has once again fallen victim to a devastating cyberattack. The hackers have successfully exploited the platform’s smart contract, resulting in the cashing out of over $4 million in digital assets, including 93.6 billion Shiba Inu (SHIB) tokens on the Ethereum blockchain, along with other tokens.
🚨MistTrack Security Alert🚨@PolyNetwork2 has been hacked again.
1/ The main hacker profit address is 0xe0af…a599. The Hacker has cashed in over $4.39 million in mainstream assets. pic.twitter.com/SYPFI4n9kF
— MistTrack🕵️ (@MistTrack_io) July 2, 2023
This marks the second breach for Poly Network, which had previously suffered a massive attack in August 2021, during which over $600 million worth of digital tokens were stolen.
The aftermath of the recent hack reveals that the hackers managed to exchange the stolen assets, valued at over $4.39 million, on several crypto platforms. According to SlowMist, a crypto intelligence portal, the hackers used exchanges such as KuCoin, FixedFloat, ChangeNOW, and Tornado Cash to launder their ill-gotten gains.
Moreover, the hackers went ahead to swap some of the stolen tokens, including sUSD, RFuel, and COOK, for mainstream assets worth a staggering $1.22 million through Uniswap and PancakeSwap.
The stolen funds have been split across more than 60 addresses on multiple chains. This dispersion strategy complicates the task of tracking and reclaiming the stolen assets, adding further challenges for the affected parties.
Poly Network Suspends Operations
Poly Network has been grappling with the aftermath of the recent breach, temporarily suspending its services and reaching out to cybersecurity professionals and individuals with relevant knowledge for assistance.
We kindly request the assistance of cybersecurity professionals and individuals with relevant knowledge. If you possess any information that could aid us in this endeavor, we encourage you to actively contact us.
— Poly Network (@PolyNetwork2) July 2, 2023
Confirming that 57 assets have been affected on ten different blockchain networks, the platform has initiated communication with centralized exchanges and law enforcement agencies in hopes of retrieving the stolen assets and avoiding potential legal consequences for the attacker. Additionally, Poly Network urges users to withdraw liquidity from decentralized exchanges to minimize further risks.
“We also strongly advise users who hold the affected assets to expedite the process of withdrawing liquidity and unlocking their LP tokens,” the team said on Twitter. “We deeply appreciate your patience and understanding during this challenging period.”
Meanwhile, the Poly Network team claims to remain committed to safeguarding user assets and promises to keep the affected parties informed about the latest developments in this ongoing incident.