$600 Million Crypto Hack: 10 Things to Know About the Heist That Rocked Poly Network

Crypto network hacks are more common than crypto bulls would like to admit. Of course, the growing pains of new tech often leave it exposed to increased scrutiny by hackers and exploiters. Blockchain is no exception to this. But the recent hack of the Poly Network is one with a lot of odd factors at play. How did the $600 million crypto hack happen? Why did the hacker return over half of the crypto already? And why did they conduct a Q&A about the hack after?

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The Poly Network hack is one of the largest — and one of the strangest — hacks crypto buffs have seen. Here’s what you need to know.

Hacker Performs $600 Million Crypto Hack, Gives Back Money and Takes Questions

  • Poly Network is a blockchain network that focuses on interoperability. Using Poly, users can move data and crypto across multiple different chains, like a bridge.
  • The hack took place across three chains within the Poly Network: the Binance (CCC:BNB-USD) chain, the Ethereum (CCC:ETH-USD) chain and the Polygon (CCC:MATIC-USD) chain.
  • According to cybersecurity firm SlowMist, the hacker exploited a vulnerability between contract calls across the chains. A contract call in blockchain is an event in which a user requests a specific function of a smart contract. These calls are not recorded on the blockchain.
  • Using this exploit, the hacker executed what is believed to be a carefully planned and long thought-out heist.
  • In the transaction memos, the hacker seemed to taunt the community. They asked developers for advice on laundering and mixing the tokens to make them harder to track. They also requested a governance vote where the community would decide what the hacker will do with the tokens.
  • The hacker ended up with $600 million in cryptos across the three chains.
  • However, they are returning the crypto to the networks. As of right now, over half of the stolen currency has been returned. The only money that hasn’t been recovered is currency taken from the Ethereum network.
  • Now the hacker is conducting their very own Q&A about the hack. In embedded messages in Ethereum transactions, they are giving insight into why and how they exploited the network.
  • They lauded the Poly Network for its sophistication, saying that the hack is “one of the most challenging hacks that a hacker can enjoy.”
  • When speaking to their motive, the hacker says they wanted to make known the network’s security flaws, and to “save the world.”

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2021/08/600-million-crypto-hack-10-things-to-know-about-the-heist-that-rocked-poly-network/.

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