• Wed. Jul 17th, 2024

Minted Tokens by PolyNetwork Cybercriminals Totals $34 Billion

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ByMarcel Bich

Jul 21, 2023
PolyNetwork Cybercriminals Mint $34B Tokens
Marcel Bich
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Metis, Ethereum’s second layer network (L2), appears to have the majority of the assets.

Lack of Liquidity Prevents Hackers From Withdrawing Tokens

The sum of money they can pay out is probably far less even if hackers and they believed there were tokens valued billions of dollars. Metis DAO said that there was not enough liquidity on Metis for the sale of the BNB and BUSD that the hackers had created once information about the vulnerability went online.

Although the incident was significant, the DAO has informed users that their money on Metis Andromeda remains secure. The incident was commented on by the CEO of Binance Changpeng Zhao. He stated that the exchange’s security team is assisting Poly in the investigation.

While PolyNetwork, Metis and other affected projects are trying to freeze the created assets, hackers are quickly selling everything they can. LookOnChain reported that crackers have already exchanged part of the tokens on ETH in an attempt to maintain liquidity.

Not the First PolyNetwork Attack

Latest attack is not the first in the history of PolyNetwork. A similar exploit occurred in August 2021. Then the hackers used the protocol to move tokens worth $610 million.

The Poly team asked users to help them track down and freeze stolen assets. Several key participants in the crypto market came to the aid of the project: Tether, for example, froze USDT in the amount of $33 million.

Six days after the attack, the hackers announced that they had been planning to return the tokens all this time. They claimed that the purpose of the theft was to expose vulnerabilities and improve the security of PolyNetwork.

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Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.