Coinfeeds Daily → Poloniex Offers $10 Million Reward for Stolen Funds Recovery

Poloniex Offers $10 Million Reward for Stolen Funds Recovery

Published: Nov 19, 2023 | Last Updated: Nov 19, 2023
Howard Kane
A scenario of recovering stolen funds from a hacker, set in a sophisticated cybersecurity command center
Image: A scenario of recovering stolen funds from a hacker, set in a sophisticated cybersecurity command center

Cryptocurrency exchange takes bold steps to address $120 million hack, including legal action and user reassurance, while setting a deadline for the hacker's response

Poloniex's Response to $120 Million Hack

In a bold move following a significant security breach, cryptocurrency exchange Poloniex has taken steps to mitigate the damage from a $120 million hack. The exchange has not only identified the hacker responsible for the theft but also extended an olive branch in the form of a $10 million "white hat" reward. This reward is contingent on the safe return of the stolen funds by a set deadline of November 25th.

Communication and Legal Action

Justin Sun, Poloniex's majority shareholder, has been proactive in addressing the situation. He reached out directly to the hacker through blockchain messages on the Ethereum network, making it clear that their identity is known and that there is an opportunity for redemption through the return of the stolen assets. Alongside these efforts, Poloniex has initiated legal proceedings with law enforcement agencies across China, Russia, and the United States, signaling a serious approach to bringing the perpetrator to justice.

Security Breach and User Reassurance

The hack, which occurred on November 10, involved a compromise of Poloniex's hot wallet system, leading to the loss of various cryptocurrencies. In response to user concerns, Poloniex has assured its customers that it will cover all losses resulting from the hack. The exchange is also working on resuming deposits and withdrawals, which were affected by the incident.

Deadline and Consequences

Poloniex has set a clear deadline for the return of the stolen funds. If the hacker fails to comply by November 25th, the exchange has indicated that it will proceed with police intervention. This ultimatum serves as a final chance for the hacker to avoid potential legal repercussions by cooperating with the exchange's terms.

Takeaways for the Crypto Community

This incident serves as a reminder of the importance of robust security measures in the digital asset space. Poloniex's approach to resolving the hack demonstrates a combination of negotiation, legal action, and reassurance to users. For other exchanges and crypto holders, it underscores the need for vigilance and preparedness for potential security threats. As the situation unfolds, the crypto community will be watching to see if the hacker takes the offered lifeline or faces the consequences of their actions.

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