Poloniex to Resume Operations after $100M Hack


Poloniex, the cryptocurrency exchange compromised
for over $100 million on November 10, has provided an update on its recovery
efforts. The company said that the steps to restore its operations were almost
complete and that the crypto exchange was operating smoothly.

Poloniex’s team has engaged a security auditing firm
to fortify the platform’s defense. Once the audit is complete, the company will
resume deposits and withdrawals.

Poloniex’s owner, Justin Sun, has been actively
involved in addressing the aftermath of the hack. Immediately after the
security breach, Sun assured users that they would be reimbursed.
He emphasized that Poloniex’s financial position had not been affected by the
exploit and that he was collaborating with other exchanges to recover the lost
funds.

This security violation was identified by the blockchain security firms: PeckShield and Cyvers. The red flags forced Poloniex to disable its wallets. Sun,
Poloniex’s investor and Tron’s Founder acknowledged the breach and offered a
“white hat bounty” to the hackers as an incentive to return the loot.

On-chain data revealed coordinated efforts by the
culprits across various blockchains. The “Poloniex hacker” targeted
an Ethereum wallet and executed a series of transactions that drained $114
million in tokens. Simultaneously, a wallet on the Tron blockchain sent approximately
$42 million to various destinations.

Poloniex Faces Regulatory Woes

The security incident added to Poloniex’s challenges
following a settlement of $7.6 million imposed against the crypto exchange by
the United States Treasury Department’s Office of Foreign Asset Control early
this year. The settlement involved allegations of sanction
violations by Poloniex. The firm is accused of allowing customers from
sanctioned regions, including Crimea, Cuba, Iran, Sudan, and Syria, to engage
in digital asset trading between 2014 and 2019.

Poloniex, launched in January 2014, implemented
compliance measures in May 2015. However, the exchange allegedly continued to allow
existing customers from sanctioned regions to trade, even after completing
their KYC requirements.

This settlement is not Poloniex’s first encounter
with regulatory challenges. In 2021, the platform paid over $10 million to
settle charges of operating an unregistered digital asset exchange with the US
securities market regulator.

Poloniex, the cryptocurrency exchange compromised
for over $100 million on November 10, has provided an update on its recovery
efforts. The company said that the steps to restore its operations were almost
complete and that the crypto exchange was operating smoothly.

Poloniex’s team has engaged a security auditing firm
to fortify the platform’s defense. Once the audit is complete, the company will
resume deposits and withdrawals.

Poloniex’s owner, Justin Sun, has been actively
involved in addressing the aftermath of the hack. Immediately after the
security breach, Sun assured users that they would be reimbursed.
He emphasized that Poloniex’s financial position had not been affected by the
exploit and that he was collaborating with other exchanges to recover the lost
funds.

This security violation was identified by the blockchain security firms: PeckShield and Cyvers. The red flags forced Poloniex to disable its wallets. Sun,
Poloniex’s investor and Tron’s Founder acknowledged the breach and offered a
“white hat bounty” to the hackers as an incentive to return the loot.

On-chain data revealed coordinated efforts by the
culprits across various blockchains. The “Poloniex hacker” targeted
an Ethereum wallet and executed a series of transactions that drained $114
million in tokens. Simultaneously, a wallet on the Tron blockchain sent approximately
$42 million to various destinations.

Poloniex Faces Regulatory Woes

The security incident added to Poloniex’s challenges
following a settlement of $7.6 million imposed against the crypto exchange by
the United States Treasury Department’s Office of Foreign Asset Control early
this year. The settlement involved allegations of sanction
violations by Poloniex. The firm is accused of allowing customers from
sanctioned regions, including Crimea, Cuba, Iran, Sudan, and Syria, to engage
in digital asset trading between 2014 and 2019.

Poloniex, launched in January 2014, implemented
compliance measures in May 2015. However, the exchange allegedly continued to allow
existing customers from sanctioned regions to trade, even after completing
their KYC requirements.

This settlement is not Poloniex’s first encounter
with regulatory challenges. In 2021, the platform paid over $10 million to
settle charges of operating an unregistered digital asset exchange with the US
securities market regulator.





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