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Half of the Stolen Cryptocurrency is Returned

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Crypto

The hacker behind one of the largest cryptocurrency heists to date has returned almost half of the $600m (£433m) stolen assets.

On Tuesday, Poly Network wrote a letter on Twitter, asking the individual to get in touch

“to work out a solution.”

The hacker then posted messages pledging to return funds, claiming

“not very interested in money.”

On Wednesday, Poly Network said it had received $260m back.

The company, a blockchain platform that lets users swap different types of digital tokens, posted on Twitter that it had been sent back three cryptocurrencies, including $3.3m worth of Ethereum and $256m worth of Binance Smart Chain (BSC), and $1m worth of Polygon.

A total of $269m in Ethereum tokens and $84m in Polygon tokens has yet to be recovered.

A blockchain is a ledger, or log, of every single transaction made of a cryptocurrency, such as Bitcoin.

The ledger is distributed to all the users in the network to verify all new transactions when they occur, instead of being held by a single authority.

Software flaws:

The hacker published a three-page-long Q&A session on one of the blockchains essentially in the form of a self-interview, according to Tom Robinson, co-founder of Elliptic, London-based blockchain analytics and compliance firm.

The hacker claimed to have always planned to return the tokens and said the heist was carried out to highlight vulnerabilities in Poly Network software.

“I know it hurts when people are attacked, but shouldn’t they learn something from those hacks?” the hacker wrote in the notes embedded on the Ethereum blockchain.

The hacker claimed to have spent all night looking for a vulnerability to exploit. They said they were worried that Poly Network would patch the security flaw quietly without telling anyone, so they decided to take millions of dollars in cryptocurrency tokens to make a point.

But they stressed that they did not want to cause a “Real panic in the crypto-world” so they only took “important coins” leaving behind Dogecoin, the cryptocurrency that started as a joke.

“Either they just intended to commit theft and steal the assets, or they were acting like a white hat hacker to expose a bug, to help Poly Network make themselves more strong and secure,” Mr. Robinson, who routinely advises governments and law enforcement agencies about crypto-related crimes, stated:

That the nature of blockchain technology makes it hard for cyber-criminals to profit from stealing digital currencies because everyone can see the money being moved across the network into the hackers’ wallets.

Mr. Robinson added:

“I wonder whether this hacker stole the funds, realized how much publicity and attention they were getting, realized wherever they moved the funds, they would be watched and decided to give it back,”

“The blockchain itself has operated here flawlessly, but the problem is on blockchains like Ethereum, you can write your smart contracts. Various services have started offering this, including Poly Network.

“So whenever a human being writes code, there’s a chance they will make a mistake.”

Reference: bbc.com