DeFi Exchange PolyNetwork has Suffered One of the Biggest Hack Incidents in History

PolyNetwork is a DeFi protocol that allows different blockchain ecosystems to connect. According to the update by the administrators, the network has recently been compromised. The official Twitter account of PolyNetwork recently posted an alert claiming that hackers are attacking PolyNetwork accounts on BSC, Ethereum, and Polygon.

According to careful estimates, around $611 million worth of crypto tokens is compromised. Hackers have started to send the stolen tokens to remote addresses on Ethereum and Binance Smart Chain (BSC). For the time being, it is not clear that how far hackers were able to breach these networks. It is worth noting that PolyNetwork provides interoperability for various blockchain networks.

O3 Swap is a crypto aggregation protocol based in Japan. The developers of the project have put the cross-chain functionality out of commission to ensure that they are excluded from the cyber-attack. Paolo Ardoino, CTO of Tether, recently tweeted that the stablecoin publisher has frozen USDT token valued at $33 million.

These tokens are thought to be associated with the PolyNetwork. Operators of PolyNetwork have started to approach miners and exchange platforms to blacklist the infected wallets at their earliest. An Ethereum user and blockchain expert hanashiro.eth advises that it is better not to use USDT anymore due to the blacklisting of input data for his altcoin transactions.

He was also able to rake in $42,000 as a reward by the hackers. After this incident, many users tried to follow the same to get salvage their losses and rake in some money rewards from the hackers. Binance CEO Changpeng Zhao remarked that BSC is not under centralized control; therefore, it is vulnerable to such breaches.

PolyNetwork is Taking Action to Contain the Situation

The PolyNetwork is in a state of chaos at this moment. The massive amounts of tokens that are stolen from personal digital wallets make this the largest DeFi hack in history. The hackers are busy sending their loot to the three dedicated wallet addresses present on Ethereum, Binance, and Polygon networks.

Thus far, the Ethereum wallet has 2,858 ETH valued at $266.5 million. The Polygon wallet has $85 million worth of digital assets. In the end, Binance Smart Chain wallet has received 6,610 BNB tokens from hackers that are valued at $252 million at current price rates. The administrators of PolyNetwork have promised their users that they are taking legal action against hackers.