PolyNetwork Hacked, Assets Stolen Across Chains
PolyNetwork, a popular decentralized finance (DeFi) platform, has reportedly fallen victim to another hacking incident, according to PeckShield Inc., an on-chain data analytics and security company. The hackers involved in this attack have executed multiple transactions across various blockchain networks, resulting in the addition of significant assets.
Hi @PolyNetwork2 , you may want to take a look:https://t.co/cmbxAsFPGLhttps://t.co/4cqVV6EryK
— PeckShield Inc. (@peckshield) July 2, 2023
Massive Theft in Recent Hack
Notably, the Heco network has been impacted by the attack, with an astonishing 999,8127T SHIB stolen. Metis has received a total of 99,99,184 BNB and 10 billion BUSD. Additionally, Polygon has seen an influx of 87,579,118 COW, 999,999,434 OOE, 636,643,868 STACK, 88,640,563 GM, and 2,175.05303. Avalanche has also been targeted, with 82,854,568 XTM, 378,028,371 STACK, 11,026,341 SPAY, and 89,383,712 GM affected. Furthermore, BSC has witnessed the introduction of 926,160,132 DOV, 978,102,855 SLD, and 8,882,911 METIS.
Metis, in response to the incident, has assured its users that the newly minted BNB and BUSD on their platform do not pose a threat to their funds as there is no available sell liquidity. The platform has emphasized that the vast amount of these assets will not be able to cross-chain, ensuring the security of users’ funds. Metis has also pledged to collaborate with PolyNetwork to mitigate the impact of the attack and evaluate the situation further.
In contrast, SlowMist founder Yu Xian downplays the significance of the hack, stating that the majority of the $4.2 billion in assets acquired by the hackers are intangible and will not be actualized. Binance CEO Chanpeng Zhao has clarified that the attack does not affect Binance users as the exchange does not support deposits from PolyNetwork. He assured the public that Binance’s security team is actively engaged in assisting with the investigation. Despite these developments, PolyNetwork has remained silent and has yet to release an official statement addressing the recent hack.
This does not affect @Binance users. We do not support deposits from this network. Our security team is assisting them in its investigations though. Stay #SAFU. https://t.co/0EsD5Ux6vW
— CZ 🔶 Binance (@cz_binance) July 2, 2023
Surge in DeFi Theft
This is not the first time PolyNetwork has suffered a security breach. In August 2021, the platform experienced a major hack, resulting in a loss of over $600 million. Regarded as the most significant DeFi hack ever recorded, the incident was caused by mismanaged access rights between two crucial Poly smart contracts, EthCrossChainManager and EthCrossChainData. Remarkably, the hacker returned most of the stolen funds, except for $33 million in Tether, which was subsequently frozen by the issuer. The hacker claimed to have turned down a $500,000 offer from PolyNetwork despite being granted immunity.
The second quarter of 2023 has witnessed a surge in DeFi theft, with over $208 million stolen and a mere $4.5 million recovered, according to a recent report. The report highlights a sevenfold increase in DeFi hacks compared to the previous year, with 117 incidents reported in Q2 2023, as opposed to only 17 during the same period in 2022. The first half of 2023 has seen a staggering loss of approximately $665 million to these hacks.
